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Gold Prices Up for Sixth Consecutive Day, Surging Over USD 100; Oil Prices Retreat for Second Consecutive Day 


Due to the weaker-than-expected US ISM Non-Manufacturing PMI data, which raised expectations for a Fed rate cut in June, the price of gold continued to rise.  

This marked six consecutive days of gains on the daily chart, with a cumulative increase of over USD 100, as further escalation in the Middle East conflict attracted safe-haven buying.  

After OPEC+ announced an extension of production cuts, profit-taking entered the market, leading to a pullback in oil prices for the second consecutive day. 

Gold >> 

On Tuesday, due to weaker-than-expected US ISM Non-Manufacturing PMI data, which raised expectations for a Fed rate cut in June.

Further escalation in the Middle East conflict attracting safe-haven buying, the price of gold continued to rise, recording six consecutive days of gains on the daily chart, with a cumulative increase of over USD 100.  

Spot gold briefly surpassed USD 2141 per ounce, reaching a historic high, before retracing slightly to close up 0.72% at USD 2129.62 per ounce; COMEX April gold futures rose 1.31% to USD 2123 per ounce. 

Earlier this week, the focus for precious metal traders was on the prospect of major central banks easing monetary policy this year.  

Several data releases this week, including US services PMI and employment data, as well as Powell’s testimony before the US Congress, will be closely watched by the market and could potentially impact gold prices accordingly. 

Yesterday, gold’s technical outlook continued bullish, with prices breaking higher. During the European session, there was a slow rise, breaking through and holding above the USD 2130 level, continuing the upward trend.  

However, during the US session, there was an accelerated rise, breaking through the USD 2141 level but facing selling pressure, resulting in a rapid decline. Ultimately, during the US session, prices tested the USD 2122 level twice, entering a period of consolidation at higher levels. 

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 2144-2150. 
  • Key support levels to watch in the short term are around 2100-2110.  

WTI Crude Oil >> 

On Tuesday, following OPEC+’s announcement of extending production cuts, profit-taking led to a pullback in oil prices, with technical adjustments dominating the fluctuations.  

WTI crude oil experienced two consecutive days of volatile declines, ultimately closing down 0.76% at USD 78.26 per barrel; Brent crude oil fell 0.04% to USD 82.72 per barrel. 

The early decision by OPEC+ to extend production cuts demonstrates its commitment to market stability, fostering a healthier market structure and providing support for oil prices, which is crucial.  

However, from another perspective, it also reflects the challenge in the current oil market where demand alone may not provide sufficient momentum for price growth.  

Taking proactive defensive measures has become the core task for OPEC+ this year, indicating that sustained strong price increases are unlikely. 

Yesterday, oil prices experienced technical fluctuations, initially declining during the Asian and European sessions to break below the USD 78 level.  

In the late US session, prices briefly rose above the USD 77.5 level before stabilizing and rebounding, only to face resistance around the USD 79.5 level during early morning trading, leading to a volatile closing. 

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 79.5-80. 
  • 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. 

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