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Gold Prices Rise Initially, Crude Oil Surges to 11-Month Highs


Yesterday, gold prices experienced a brief surge followed by a slight pullback. Supported by a minor decline in the U.S. dollar and expectations that the Federal Reserve will pause interest rate hikes this year, gold briefly climbed near the one-month high it reached in the previous trading session before edging lower.  

Meanwhile, the efforts of OPEC+ to reduce supply over the past few months, coupled with China’s robust economic support, alleviated demand concerns, leading to a significant increase in oil prices and reaching their highest levels since November of last year. 

Gold >>

Yesterday, supported by a slight pullback in the U.S. dollar and expectations that the Federal Reserve will pause interest rate hikes this year, gold prices briefly climbed near the one-month high reached in the previous trading session.  

In the U.S. market’s closing, gold closed at $1,938.17 per ounce, down $1.63 or 0.08% for the day. It reached a daily high of $1,946.36 per ounce and a low of $1,936.69 per ounce. 

Currently, many traders in the global market, who were bearish on the economy, are pressuring the bond market. Rising bond yields and a strong U.S. dollar are expected to continue to restrain gold prices.  

While gold has successfully neutralized its bearish trend, there is still some way to go before entering the bear market territory. Despite the recent strengthening of the U.S. dollar, gold bulls continue to provide support, which is a rather bullish factor. 

Yesterday, gold prices technically continued to face pressure, fluctuating after reaching highs. During the Asian-European session, prices oscillated slightly and then rose. In the afternoon, there was a further acceleration in the upward movement, breaking through the $1,946 level but facing resistance, leading to a pullback.  

During the late U.S. session, there were consecutive declines, breaking below the early rally point of $1,939 and continuing to decline to around $1,938, ending the session on a weak note.

Technical Analysis: 

Today’s gold trading strategy suggests focusing primarily on shorting during rebounds and considering long positions during price dips. 

  • Key resistance levels to watch in the short term are around 1950-1955. 
  • Key support levels to watch in the short term are around 1930-1925. 

WTI Crude Oil >> 

On Monday, U.S. crude oil experienced a slight decline, currently trading around $85.6 per barrel. The efforts by OPEC+ to reduce supply over the past few months have dominated the spot market.

Additionally, China’s economic stimulus measures have alleviated concerns about demand, as China plays a crucial role as the global engine for oil consumption. Subsequently, oil prices have surged, reaching their highest levels since November of last year.

Since April of this year, Saudi Arabia has been leading the call for OPEC and its allies to cut production in order to boost the struggling oil prices.

However, in late June, as Saudi Arabia’s crude oil supply dropped to multi-year lows, Russia strengthened its commitment to supporting prices. Combined with China’s increased economic stimulus measures, this led to a rebound in crude oil prices.

In terms of technical analysis, oil prices continued their strong bullish oscillation pattern near high levels on Monday. During the Asian and European trading sessions, there was slight downward pressure around the $86 per barrel mark, resulting in a minor dip.

However, in the afternoon session, prices quickly rebounded, stabilizing around the $85.2 per barrel mark before making another strong upward move during the European and American sessions, breaking through the $86 per barrel threshold and closing on a high note.

Technical Analysis: 

Today’s short-term trading strategy for crude oil suggests a primary focus on buying during dips and considering short positions during rebounds. 

  • Key resistance levels to monitor in the short term are around 87.0-87.5. 
  • Key support levels to monitor in the short term are around 85.0-84.5. 

Forward-looking Statements    
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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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