Search Mark
Home / Market Insight

Gold Price Rises, Hits Three-Week High; Oil Price Drops Nearly 2% 


The Fed’s interest rate cut expectations continue to heat up, the US dollar touches a five-month low, gold price sees a fourth consecutive rise, hitting a three-week high; some companies resume operations on the Red Sea route, oil prices erase the previous day’s gains, dropping nearly 2%.  

Gold >>  

On Wednesday, bets on a Federal Reserve interest rate cut continued to increase. Coupled with US Treasury yields hitting multi-month lows and the safe-haven function of gold becoming more prominent, the gold price continued to rise.  

Spot gold reached its highest point since December 4th at USD 2084.36 per ounce during the session, closing at USD 2077.47. Gold futures rose by USD 23.3 per ounce compared to the previous trading day, closing at USD 2093.1 per ounce, with a gain of 1.13%. 

The heightened geopolitical tensions enhanced gold’s attractiveness as a safe haven for market participants. Recent US data has provided little support for the US dollar, which continued to weaken after a series of US data releases.  

This led market participants to once again raise expectations of a US interest rate cut in 2024, putting pressure on the US dollar index, which touched a five-month low. The weakness of the US dollar tends to push up prices of precious metals priced in dollars. 

After a narrow consolidation in the technical range of 2061-2066, gold experienced a strong upward trend in the late US session, breaking through the high.  

After 22:00, it quickly rose to the 2075 level based on the 2065 support, reaching a recent rebound high. In the early morning, it accelerated further to the 2084 level before pulling back, closing strongly. 

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 2085-2090. 
  • Key support levels to watch in the short term are around 2065-2060. 

WTI Crude Oil >> 

On Wednesday, optimism prevailed among people regarding the possibility of a US interest rate cut. Meanwhile, the market focused on developments in the Red Sea situation, leading to a nearly 2% decline in international crude oil futures.  

WTI crude oil reported USD 74.11 per barrel, a decrease of 1.93% or USD 1.46 per barrel. Brent crude oil reported USD 79.65 per barrel, with a decline of 1.75% or USD 1.42 per barrel. Investors closely monitored the developments in the Red Sea.  

Despite another attack on Tuesday, shipments were still returning to the Red Sea. Both Brent and WTI benchmark prices had risen by over 2% in the previous trading day due to concerns about shipping interruptions following the latest attacks on Red Sea vessels.  

However, the partial resumption of Red Sea routes by some companies alleviated concerns about supply disruptions, leading to a decline in oil prices, erasing the gains from the previous day. 

On the technical side, oil prices faced resistance around the USD 75.6 level, experiencing a slight rebound but ultimately encountering pressure, resulting in a fluctuating downtrend closing below the previous bottom.  

During the Asian and European sessions, prices oscillated in the range of USD 74.2 – USD 75.4, with a back-and-forth movement. In the late US session, there was a second rebound attempt, facing resistance around the USD 75.4 level, leading to a weak pullback and closing below the previous bottom. 

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 75.0-76.0. 
  • Key support levels to monitor in the short term are around 72.0-71.0. 

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. 

Share to

Market Insight

Gold Surges USD 30 Intraday, Weak Demand Drags Oil Prices from Gains to Losses 

The market's anticipation of a June interest rate cut by the Federal Reserve grew, leading to a surge in gold prices to a three-month high of USD 2119.79 per ounce, with an increase of approximately USD 30 within the day.  

2024-3-5 | Market Insight

Gold Rises to Two-Month High, Crude Oil Up Nearly 2% 

Lower-than-expected economic data has boosted expectations of interest rate cuts, while the weakening US dollar pushed gold to its highest point in two months last Friday.

2024-3-4 | Market Insight

PCE May Delay Fed Rate Cuts, Boosting Gold Prices and Weighing on Oil 

The US PCE data met expectations, and the slight increase in initial jobless claims in the US provided upward momentum for gold prices, briefly touching a one-month high. 

2024-3-1 | Market Insight