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Gold Tests $2330, Oil Peaks then Pulls Back


Gold Tests $2330, Oil Peaks then Pulls Back

Gold

On Wednesday, with most US markets closed for Juneteenth, trading activity was relatively subdued. Previous data indicated weak US economic activity, maintaining hopes for at least one rate cut this year.

Concerns about potential escalation in the Middle East also provided safe-haven support for gold, which traded in a narrow range. Spot gold tested the $2330 level multiple times but fell back towards the close, ending down 0.04% at $2328.32 per ounce.

Data showed US retail sales barely grew in May, with April’s figures significantly revised downward, suggesting continued weak economic activity in the second quarter.

Market focus is now on Thursday’s US weekly jobless claims data and Friday’s preliminary PMI. Other key events include the Bank of England’s rate decision, geopolitical developments, and speeches from Fed officials.

Gold Technical Analysis:

Yesterday, gold saw minor gains, briefly breaking above the $2334 resistance before falling back, continuing to trade in a narrow range. The daily chart showed a doji candle, indicating indecision. Overall, the price remains in a tight consolidation below $2340, with a bearish bias in the short term.

Gold Tests $2330, Oil Peaks then Pulls Back

Today’s Focus:

  • Short-term strategy: Favor buying on pullbacks and shorting on rebounds.
  • Resistance: $2342-$2347
  • Support: $2317-$2312

Oil

On Wednesday, oil prices hit a near seven-week high during the session, driven by optimism about summer demand and concerns over escalating conflicts, which offset an industry report showing a surprise increase in US crude inventories. However, oil prices pulled back towards the end of the session.

WTI crude briefly surpassed $81 before closing down 0.17% at $80.54 per barrel, while Brent crude closed down 0.19% at $84.63 per barrel.

Recent geopolitical tensions and Fed rate cut expectations have supported oil prices, which have been rising for nearly two weeks. Despite persistent inventory builds indicating an oversupplied market, OPEC+ has extended its voluntary production cuts into the third quarter.

Market attention is now on whether demand during the peak summer season will improve as expected and if OPEC+ will delay plans to start easing cuts from October. These factors are crucial for oil price assessment and will be key points of focus for the market in the second half of the year.

Oil Technical Analysis:

Yesterday, oil prices saw a minor surge, breaking above the $81.1 resistance before pulling back. The daily chart showed a doji candle, indicating indecision. Prices found support above the $80 level, maintaining a bullish bias. Short-term technical indicators suggest minor divergences at higher levels, but the overall uptrend remains intact.

Gold Tests $2330, Oil Peaks then Pulls Back

Today’s Focus:

  • Short-term strategy: Favor buying on pullbacks and shorting on rebounds.
  • Resistance: $82.0-$82.5
  • Support: $79.5-$79.0

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