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Gold Records Best Monthly Performance in Four Months, Oil Prices Hit Three-Month High


Supported by the expectation of major central banks nearing the end of their tightening actions, gold prices rose, recording the best monthly performance in four months.  

Additionally, global oil prices reached a three-month high due to tightening supply and increasing demand throughout the year, with the largest monthly gain since January 2022. 

Gold>>

Due to a weakening US dollar and market expectations of major central banks nearing the peak of interest rate hikes, gold prices rose on Monday, recording their best single-month performance in four months. 

In early US trading, spot gold briefly rose to a high of $1972.39 per ounce before retreating to around $1967. So far this month, gold prices have increased by 2.5%. The declining US dollar index for the second consecutive month has increased the attractiveness of gold to holders of other currencies.  

Asian and European stock markets showed mixed movements in overnight trading. The market is increasingly betting that the central bank tightening cycle is nearing its end this month, benefiting gold. This week, the market will focus on the US nonfarm payrolls report for July. 

Gold opened the day under pressure at around $1960, rebounded during the European session, retraced to around $1951, but quickly bounced back, currently trading above $1970, and even piercing through the 10-day moving average at $1965, reaching a high near $1972. 

Technical Analysis: 

Today’s short-term gold trading advice is to focus on buying on pullbacks and consider shorting on rebounds.  

  • Key resistance levels to monitor in the short term are between $1975 and $1980. 
  • Key support levels to monitor in the short term are between $1955 and $1950. 

WTI Crude Oil>>

On Monday, in the US market, WTI crude oil traded around $81.39 per barrel, marking a three-month high and recording the largest monthly gain since January 2022. The surge is attributed to signs of tightening global supply and increasing demand for the remainder of the year.  

According to data from energy services company Baker Hughes, the number of active oil rigs in the US decreased to 529 last week, the lowest level since March 2022. 

Saudi Arabia is expected to extend its voluntary production cuts until September, with analysts predicting that this move will provide additional support to the oil market.  

Previously, OPEC+ reached a broad agreement in June to extend production cuts until 2024, and Saudi Arabia pledged additional voluntary cuts in July. 

Overall, optimistic demand expectations and supply reductions are expected to keep oil prices on an upward trajectory. However, it is essential to monitor developments such as Russia’s agreement to sell most of its oil production and signs of easing geopolitical tensions, as they may limit the extent of the price increase. 

Last week, crude oil continued its upward trend, displaying a strong performance with consecutive weekly gains. The weekly closing was robust, indicating that the upward momentum is likely to continue this week. 

Technical Analysis: 

Short-term trading strategy suggests focusing on long positions on pullbacks and short positions on rebounds.  

  • Key resistance levels to monitor on the upside at around 83.0-83.5. 
  • Key support levels to monitor on the downside at around 81.0-79.5. 

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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