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Initial Unemployment Claims Data Suppresses Gold Prices, Geopolitical Tensions Continue to Support Oil Prices 


Therefore, the previously announced initial claims for unemployment benefits in the United States indicated a strong economy, causing gold prices to retreat from their recent two-week highs.  

However, the remarks of two Federal Reserve officials leaned slightly dovish, and geopolitical tensions persist, helping to keep gold prices above the 2020 level.  

Hostile actions in the Red Sea region continue, with Houthi militants allied with Iran stepping up attacks near Yemen, leading to a slight increase in oil prices. 

Gold >>  

On Thursday, as previously announced initial claims for unemployment benefits indicated a strong US economy, gold prices retreated from their recent two-week highs. However, the remarks of two Federal Reserve officials leaned slightly dovish, and geopolitical tensions remained high.  

Spot gold traded in a narrow range, currently around USD 2025.47 per ounce; COMEX April gold futures fell by 0.18%, closing at USD 2030.7 per ounce. Data showed that last week’s initial claims for unemployment benefits unexpectedly decreased, suggesting that February’s employment growth may remain robust.  

The US Department of Labor reported that for the week ending February 17th, initial claims for unemployment benefits decreased by 12,000 people to a seasonally adjusted 201,000. Economists surveyed had previously predicted 218,000.  

US bond yields rose on Thursday, making gold more expensive for investors holding other currencies. Gold technically saw highs followed by declines in volatile trading, breaking through support levels and closing lower.  

Prices stabilized around the USD 2025 level during the Asia-Europe session, then rebounded and strengthened. In the afternoon, there was further acceleration in the upward movement, breaking through the USD 2030 level and reaching around USD 2034 before facing resistance and retreating.  

During the US session, influenced by the negative impact of initial claims for unemployment benefits, gold prices came under pressure, dropping sharply below the USD 2029 level, ultimately breaking through the USD 2020 level and fluctuating to close lower.

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 2030-2033. 
  • Key support levels to watch in the short term are around 2013-2008. 

WTI Crude Oil >> 

On Thursday, hostile actions in the Red Sea region continued as Houthi militants allied with Iran intensified attacks near Yemen. WTI April crude oil futures rose by USD 0.70, or 0.91%, to USD 78.61 per barrel, while Brent April crude oil futures increased by USD 0.64, or 0.77%, to USD 83.67 per barrel. 

Although geopolitical tensions supported oil prices, a significant increase in US crude oil inventories limited the gains. Speeches from Federal Reserve officials leaned slightly dovish, raising prospects for interest rate cuts by the Fed later this year, which could provide further upside for oil prices.  

Recent refinery shutdowns have led to some disruptions in global crude oil production, but these barrels may come back online, which could pressure crack spreads and potentially support more oil usage. 

This trading day will see the release of EIA crude oil inventory data and a slew of Euro-American PMI data, along with speeches from several Federal Reserve officials, all of which investors need to monitor closely. 

Technically, oil prices continued their recent pattern of oscillating upward after an initial decline. During the Asia-Europe session, prices quickly fell under pressure below the USD 78.4 level, but rebounded to stabilize and rise back above the USD 77.2 level during the afternoon European session.  

In the late US session, bullish momentum pushed prices higher, breaking through the morning’s opening decline level of USD 78.4 and continuing to rise to around USD 78.9 before retracting and closing with oscillations. 

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 79.3-79.8. 
  • Key support levels to monitor in the short term are around 77.2-76.7. 

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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