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Gold Prices Rebound, U.S. Oil Rises About $2


1. Forex Market Insight    

EUR/USD  

EUR/USD oscillated on Tuesday, closing down 0.16% at 0.9593. 

The prospect of a recession in the eurozone is becoming increasingly gloomy, becoming a major factor dragging down the euro. 

European Central Bank President Christine Lagarde said Monday, 26 September 2022, that the level of inflation in the eurozone remains high and the ECB will continue to raise interest rates in response to the continued rise in inflation levels. 

Lagarde said that the economic outlook for the eurozone is becoming increasingly gloomy due to multiple factors. 

The latest reports that the Organization for Economic Cooperation and Development (OECD) is particularly pessimistic about the economic outlook for Europe, with the eurozone economy expected to grow by only 3.1% this year, down 0.5% points from its forecast in June. 

Eurozone GDP growth is expected to slow sharply to 0.3% in 2023, a downward revision of 1.3% points compared to previous expectations. 

Technical Analysis:

(EUR/USD 1-hour chart)  

We focus on the 0.9597-line today. If EUR runs steadily below the 0.9597-line, then pay attention to the support strength of the two positions of 0.9559 and 0.9503. If the strength of EUR breaks above the 0.9597-line, then pay attention to the suppression strength of the two positions of 0.9701 and 0.9770.   

GBP Intraday Trend Analysis   

Fundamental Analysis:

After Monday’s, 26th September 2022, plunge, the pound stabilized against the dollar on Tuesday, finally closing up 0.42% at 1.0731. 

Earlier, Bank of England chief economist Peel said that the Bank of England may make a “significant policy response” to the Chancellor’s huge tax cut plan, but should wait until the next policy meeting in November before taking action. 

The Bank of England said Monday, 26th September 2022, that it will not hesitate to adjust interest rates and is monitoring the market “very closely,” leading some market participants to expect the Bank to raise interest rates between regular meetings. However, the outlook for the British economy is still weighing on the pound. 

Technical Analysis:

(GBP/USD 1-hour chart) 

Execution Insight:   

GBP is mainly focused on the 1.0662-line today. If GBP runs below the 1.0662-line, it will pay attention to the suppression strength of the two positions of 1.0529 and 1.0357. If GBP runs above the 1.0662-line, then pay attention to the suppression strength of the two positions of 1.0890 and 1.0986. 

2. Precious Metals Market Insight   

Gold   

Fundamental Analysis:   

Gold prices rebounded from a two-and-a-half year low on Tuesday as the dollar rally paused, helping to restore gold’s appeal, but the risk of a looming interest rate hike remains. 

The dollar’s retreat from a 20-year high prompted investors to turn to gold, which touched its lowest since April 2020 at $1,620.20 in the last trading session. 

Federal Reserve Bank of Chicago President Evans said Tuesday, 27th September 2022, that the Fed needs to raise interest rates by at least another 100 basis points this year. 

Technical Analysis:   

(Gold 1-hour chart)   

Trading Strategies:   

Gold pays attention to the 1627-line today. If the gold price runs steadily below the 1627-line, then it will pay attention to the support strength of the 1616 and 1594 positions. If the gold price breaks above the 1627-line, then pay attention to the suppression strength of the two positions of the 1648 and 1660.       

3. Commodities Market Insight   

WTI Crude Oil   

Fundamental Analysis:

Oil prices rose about $2 a barrel Tuesday, 27th September 2022, from a nine-month low a day earlier, supported by constrained supplies in the U.S. Gulf of Mexico ahead of Hurricane Ian and a pullback in the dollar from its strongest level in 20 years. 

The Organization of Petroleum Exporting Countries and its allies (OPEC+) will meet on 5th Oct 2022 to set policy, and expectations that the group may cut supply are providing support for prices. 

Russia may propose that OPEC+ cut oil output by about 1 million barrels per day at its next meeting in October, a source familiar with Russian views said Tuesday. 

U.S. offshore oil producers say they are closely monitoring the track of Hurricane Ian, the powerful storm that shut down about 11 percent of U.S. oil production in the Gulf of Mexico as it barreled toward Florida. 

Technical Analysis:   

(Crude oil 1-hour chart)

Trading Strategies:   

Oil prices focus on the 77.06-line today. If the oil price runs above the 77.06-line, then focus on the suppression strength of the two positions of 79.12 and 80.00. If the oil price runs below the 77.06-line, then pay attention to the support strength of the two positions of 75.69 and 75.04.  

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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