Prior to this, US inflation data came in higher than expected, prompting investors to reduce bets on the Federal Reserve’s early rate cuts. As a result, the price of gold fell for six consecutive trading days.  

A sharp increase in US crude oil inventories dragged down oil prices, and potential security threats facing the United States could suppress the demand for oil from the world’s largest economy. Both US and Brent crude oil futures closed down by more than 1%. 

Gold >>  

On Wednesday, US inflation data came in higher than expected, prompting investors to reduce bets on the Federal Reserve’s early rate cuts.  

As a result, the price of gold fell for six consecutive trading days, with spot gold hovering near the USD 1990 mark and ultimately closing down by 0.04% at USD 1992.33 per ounce; COMEX gold futures fell by 0.11%, closing at USD 2005 per ounce. 

Amidst the weakened prospects of a Fed rate cut, geopolitical tensions fluctuated once again. Therefore, it’s advisable to buy gold from bearish levels, as global geopolitical tensions serve as fertile ground for gold, and the global banking market is also supported by gold.  

US inflation has decreased significantly, to the extent that the Federal Reserve has hinted at multiple rate cuts this year. Such rate cuts typically stimulate financial markets and the economy, easing the pressure accumulated since the Fed raised key rates to their highest levels since 2001. 

Gold prices exhibited minimal technical fluctuations during the day. In the Asian-European session, prices remained subdued below the USD 1993 mark, consolidating within a narrow range.  

During the US session, they oscillated sideways within the USD 1990- USD 1993 range, eventually experiencing a downward break below USD 1994 before stabilizing and rebounding to close in a volatile manner. 

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 2000-2005. 
• Key support levels to watch in the short term are around 1979-1975. 

WTI Crude Oil >>  

On Wednesday, a sharp increase in US crude oil inventories dragged down oil prices, and potential security threats facing the United States could suppress the demand for oil from the world’s largest economy.  

WTI crude oil futures settled at USD 76.64 per barrel, down USD 1.23, a decrease of 1.6%; Brent crude oil futures settled at USD 81.60 per barrel on Wednesday, down USD 1.17, a decrease of 1.4%. Earlier in the session, both oil benchmarks had risen by more than 1%, reaching near two-week highs.  

However, after the release of the US Energy Information Administration (EIA) crude oil inventory series data, both benchmarks fluctuated and turned lower, falling below their 200-day moving averages.  

The latest EIA data showed that crude oil inputs to Midwest refineries in the United States fell to their lowest level since December 2022 last week. Meanwhile, crude oil inventories saw the largest increase in over three months last week.  

Strategic petroleum reserves increased by 750,000 barrels, driving the increase in commercial inventories beyond expectations. This led to a national crude oil total increase of 12.76 million barrels for the week ending February 9. 

On the technical side, oil prices closed lower after breaking through support levels amidst volatile trading. During the Asian-European session, prices edged slightly higher above the USD 77.6 mark, continuing their modest rise to above USD 78, before strengthening further.  

However, during the US session, prices accelerated upward, breaking through the USD 78.7 level before facing resistance and falling back, breaking through support levels. In the early hours, oil prices accelerated downward, breaching the USD 77 mark and reaching around USD 76.4 before closing weakly. 

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 80.0-80.5. 
• Key support levels to monitor in the short term are around 77.5-77.0. 

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