Strong economic data reinforces the likelihood of a July interest rate hike by the Federal Reserve, exerting pressure on gold prices. Hawkish remarks from the Federal Reserve restrict the upward movement of oil prices.
In addition, challenges in the U.S.-Iran negotiations hinder the surge in oil prices, resulting in a potential continuation of volatile fluctuations.
Following the release of robust economic data in the United States yesterday, gold prices experienced significant fluctuations. Spot gold plunged over $10, breaking below the $1900 level and hitting a new low since March of this year at $1890 per ounce.
The final reading of the U.S. Q1 real GDP exceeded the initial estimate by 1.3%, signaling a stronger economic growth and easing concerns of an economic downturn.
During today’s early Asian trading session, spot gold traded around $1909 per ounce. Despite a slight rebound from yesterday’s multi-day lows, hovering around $1908 per ounce, the overall sentiment for gold remains bearish.
In short-term gold trading strategies, prioritize short-selling opportunities during rebounds, while considering low-level long positions as secondary.
- Key resistance levels to watch in the short term are around 1913-1915.
- Key support levels to monitor in the short term are around 1890-1893.
During today’s early Asian session, WTI crude oil traded around $69.60 per barrel. Hawkish remarks from the Federal Reserve have limited the upward movement of oil prices, while challenges in the U.S.-Iran negotiations suggest potential volatility ahead.
Additionally, concerns arise over interest rate hikes and economic growth following Federal Reserve Chairman Powell’s reaffirmation of gradual rate increases in the coming months.
Yesterday, the crude oil market opened at $69.05 per barrel, retraced to $68.8 per barrel, and then experienced a temporary rebound, reaching a daily high of $70.47 per barrel.
However, it faced resistance and retreated to a daily low of $68.78 per barrel. The session concluded with a rally, closing at $69.65 per barrel. The candlestick pattern resembled an inverted hammer, signaling a resistance level after the rally.
Crude oil encounters resistance following the rally, challenging the bullish momentum. Today’s trading strategy recommends exploring short-selling opportunities at higher levels while cautiously considering long positions at lower levels.
- Key short-term resistance levels to focus on $70.6-$71.6 per barrel
- Key short-term support levels to focus on $68.9-$67.0 per barrel
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