The latest data released by the US Department of Labor shows that last week’s initial jobless claims exceeded expectations, strengthening the market’s bet that the Federal Reserve will cut interest rates later this year. Gold prices rose more than 1%.  

Data from China and the United States indicate that the demand of the world’s two largest oil-consuming countries may rise, and the failure of ceasefire negotiations in the Middle East provides support for oil prices, pushing them to their highest level in a week. 

Gold >>  

On Thursday, the increase in initial jobless claims in the United States exceeded expectations, reinforcing the market’s bet that the Federal Reserve will cut interest rates later this year.  

Spot gold rose by more than 1%, breaking through the 2310, 2320, 2330, and 2340 levels successively, ultimately closing up 1.61% at USD 2345.85 per ounce. 

Data released by the US Department of Labor on Thursday showed that in the week ending May 4, initial jobless claims increased by 22,000, seasonally adjusted to 231,000. Economists had expected claims to be around 215,000 for the most recent week.  

Following the release of the employment report, the US dollar weakened, closing down 0.27% on Thursday, reducing the price of gold for holders of other currencies.  

In terms of technical analysis of gold during the US session, the bullish employment figures boosted gold, pushing it from the 2318 level to a surge towards 2328, followed by a sharp reversal to 2312 before another surge back up, breaking through the 2330 level and rising to around 2338.  

However, the bulls did not see further momentum, instead experiencing another round of oscillation near 2328 before settling into a range-bound pattern. In the midnight session, bullish sentiment in gold surged due to geopolitical risks, propelling a slow rise until it peaked near 2347 before settling around 2345 at the close. 

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 2360-2365. 
• Key support levels to watch in the short term are around 2320-2325. 

WTI Crude Oil >> 

On Thursday, data from China and the United States indicated that the demand of the world’s two largest oil-consuming countries may rise, along with the failure of ceasefire negotiations in the Middle East, providing support for oil prices, which rose to their highest level in a week.  

WTI crude oil saw a roller-coaster trend during the session but regained most of its lost ground during the US session, ultimately closing up 0.35% at USD 79.16 per barrel; Brent crude oil closed up 0.46% at USD 83.90 per barrel. 

China’s foreign trade situation showed significant improvement, with April exports rebounding from negative to positive growth as expected, mainly benefiting from the lower base last year and relatively strong overseas demand.  

Imports in the same month exceeded expectations and reached a three-month high, while the trade surplus remained at a high level. In the United States, initial jobless claims last week reached their highest level in over eight months, providing further evidence of cooling in the labor market.  

This has increased market bets on the Fed cutting interest rates this year and improved demand outlook, supporting oil prices. In the crude oil market, yesterday’s opening saw an upward trend from the position of 79.33.  

After reaching a daily high of 79.9, prices quickly retreated, with the lowest point hitting 79 before a late-session rally brought it to close at 79.67. The daily candlestick formed a small bullish candle with a long lower shadow, indicating some upward momentum. 

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 80.6-81.0. 
• Key support levels to monitor in the short term are around 77.6-77.0. 

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