Search Mark
Home / Market Insight

Gold Prices Fall for Six Consecutive Trading Days, Both Oil Benchmarks Drop by Over 1% 


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. 

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 Prices Climb Approaching 2400 Mark Again, Oil Prices Bottom Out and Rebound 

Despite the rise in the US dollar and US Treasury yields following stronger-than-expected US March retail sales data, aided by safe-haven demand driven by tensions in the Middle East, gold prices climbed 1.64%, once again approaching the 2400 level. 

2024-4-16 | Market Insight

Safe-haven Demand Rises: Gold Surges Nearly USD 30, Oil Prices Edge Up by About 1% 

Last Saturday evening, influenced by the escalation of the Middle East situation over the weekend, there was a push for safe-haven assets, causing the price of gold to briefly spike nearly USD 30.  

2024-4-15 | Market Insight

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.  

2024-4-9 | Market Insight