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.
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.
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.
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.
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