Gold prices rose during quiet holiday trading as the market focused on the Federal Reserve’s release of the June meeting minutes for further clues on future interest rate paths. Oil prices climbed as the market weighed the balance between major oil-exporting countries Saudi Arabia and Russia’s supply cuts in August and the sluggish global economic outlook.
Gold prices rose on Tuesday amidst subdued market trading due to the U.S. Independence Day holiday. Spot gold closed at $1925.65 per ounce, reaching a high of $1930.75 per ounce and a low of $1919.81 per ounce during the session. Market participants eagerly await the release of the Federal Reserve’s June meeting minutes on Thursday, seeking further insights into the future interest rate trajectory.
During Wednesday’s Asian session, spot gold exhibited narrow fluctuations, casting doubt on the possibility of the Federal Reserve maintaining its hawkish policy stance. The rebound of the U.S. dollar index faced resistance, providing ongoing support for gold prices.
For short-term trading strategies in gold, it is advisable to focus on shorting during rebounds and consider buying on pullbacks.
- Key resistance levels to monitor in the near term are between 1937 and 1942.
- Key support levels to watch in the near term are between 1910 and 1915.
WTI Crude Oil >>
During Tuesday’s U.S. session, WTI crude oil traded around $71.07 per barrel. In the early Asian session on Wednesday, it hovered near $71.12 per barrel. Oil prices climbed as the market balanced the reduction in supply by major oil-exporting countries Saudi Arabia and Russia in August against concerns about a weak global economic outlook. Geopolitical tensions and Russia’s firm stance against external pressure also contributed to the price increase.
The global economic slowdown has dampened the impact of production cuts by Saudi Arabia and its OPEC allies, leading to a bearish sentiment among investors toward crude oil. Market attention is now focused on the OPEC International Seminar and the upcoming release of the Federal Reserve’s monetary policy meeting minutes.
In the previous session, the crude oil market exhibited range-bound trading, fluctuating between 70.7 and 70.2. It dipped to around 69.9 in the Asian session before rebounding to a high near 71.44. However, it experienced downward pressure after breaking below 71.2, reaching around 70. The lowest point for crude oil yesterday was approximately 69.97.
For today’s crude oil trading, it is recommended to focus on buying on dips as the primary strategy, with selling on rallies as a secondary approach.
- Key resistance levels to watch in the short term are between 71.8 and 72.3.
- Key support levels to monitor in the short term are between 69.5 and 70.0.
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