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Gold Price Hits Record High for Seventh Consecutive Day, Oil Price Drops Over 2% at One Point 


Assisted by central bank buying and geopolitical tensions, strong economic data failed to weaken the appeal of gold. On Monday, gold prices hit a record high for the seventh consecutive trading day at USD 2353.83 per ounce.  

Israel and Hamas began a new round of ceasefire negotiations, causing oil prices to plummet by over 2% at one point during the trading session.  

However, due to the stalemate in ceasefire negotiations, concerns about tight supply persist, leading to a significant narrowing of losses in the European and American trading sessions.  

Gold >>  

On Monday, assisted by central bank buying and geopolitical tensions, strong economic data failed to weaken the appeal of gold. Gold prices hit a record high for the seventh consecutive trading day. Spot gold rose to USD 2353.82 per ounce, with gains narrowing slightly afterwards, ultimately closing up 0.39% at USD 2338.94 per ounce. 

Despite easing geopolitical tensions in the Middle East, gold prices still surpassed USD 2350 per ounce, reaching historic highs. Expectations of a sharp increase in gold purchases by central banks worldwide offset hawkish bets driven by US non-farm payroll data.  

Before the release of US CPI data, in the extreme overbought situation indicated by the RSI, gold prices may reverse due to profit-taking. In terms of technical analysis, gold continued to fluctuate widely above the 2300 psychological level yesterday.  

The Asian session saw a slight decline below the 2303 level before stabilizing and rebounding. During the European session, there was a rapid rise breaking through and holding above the 2330 level, reaching near 2353 before experiencing downward pressure, then oscillating downwards.  

In the late US session, there were two rebounds, but facing pressure at the 2343 level, followed by a downward oscillation breaking the 2320 level before stabilizing, rebounding above 2330, and closing with fluctuations. 

Technical Analysis: 

Today’s short-term strategy for gold suggests prioritizing short positions during rebounds, with long positions considered as a secondary approach during pullbacks. 

  • Key resistance levels to watch in the short term are around 2350-2360. 
  • Key support levels to watch in the short term are around 2310-2320. 

WTI Crude Oil >>    

On Monday, Israel and Hamas initiated a new round of ceasefire negotiations, causing oil prices to experience their largest intraday decline, dropping by over 2%.  

However, as the ceasefire talks reached an impasse, concerns about tight supply persisted, leading to a significant narrowing of losses during the European and American trading sessions. WTI crude oil futures closed down USD 0.48, a decrease of 0.6%, at USD 86.43 per barrel; Brent crude oil futures fell USD 0.79, a decline of 0.9%, closing at USD 90.38 per barrel. 

Israeli and Hamas delegations headed to Egypt for a new round of negotiations on a possible ceasefire before the Eid holiday, easing tensions in the Middle East. This event appeared to act as a catalyst for the decline in oil prices. 

On the technical side, oil prices rebounded from the support level around USD 84.7, accelerating their ascent in the afternoon and breaking through the USD 86.3 level, leading to sideways consolidation. In the late US session, there was a second upward push but met resistance at the USD 87 level, resulting in oscillations and closing with fluctuations. 

Technical Analysis: 

Today’s crude oil trading strategy suggests prioritizing short positions during rebounds, with long positions considered as a secondary approach during pullbacks 

  • Key resistance levels to monitor in the short term are around 87.5-88.0. 
  • Key support levels to monitor in the short term are around 85.0-84.5. 

Forward-looking Statements    
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.     

Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.     

Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.    

 
Disclaimer    

While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision. 

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