This week focuses on statements from the G20 finance ministers and central bank governors’ meeting, seeking more signals about the direction of the Federal Reserve’s interest rate policy.  

Last Friday, gold retraced its gains from the previous Friday due to the decline in the U.S. dollar and experienced volatile declines. Oil prices retreated after reaching highs last Friday, dropping over $1 per barrel. 

Gold>>

Last Friday, the spot gold price experienced volatile declines due to the strength of the U.S. dollar, retracing some of its gains from the rapid decline in the U.S. dollar.  

However, it still reached the highest weekend closing level in over a month. Prior to this, softer U.S. inflation data led the market to speculate that the Federal Reserve would pause its rate hikes.  

This week, key focus will be on China’s second-quarter Gross Domestic Product (GDP) data, as well as UK’s Consumer Price Index (CPI) and Producer Price Index (PPI) data. The G20 finance ministers and central bank governors’ meeting is also worth paying attention to. 

In the U.S. market’s closing, spot gold closed at $1,954.55 per ounce, down $5.70 or 0.29%, with a daily high of $1,963.77 per ounce and a low of $1,950.84 per ounce. Last week, spot gold rose significantly by $30.26 or 1.57%. 

Gold has now returned to the previous range of consolidation between $1,940 and $1,970, with intense battles between long and short positions around the $1,960 level.  

Currently, it has not been able to successfully break through the resistance level at $1,963 nor drop below $1,950, overall trading within the range of $1,950 to $1,963. 

Technical Analysis: 

The market is currently showing a predominantly bearish trend, suggesting a focus on short positions while considering long positions at lower levels. 

• Key resistance levels to watch in the short term are around 1960-1966. 
• Key support levels to watch in the short term are around 1940-1930. 

WTI Crude Oil>>

During the early Asian trading session today, WTI crude oil was trading near $74.90 per barrel. Oil prices declined by nearly 2.5% last week, dropping over $1 per barrel, driven by a strengthening U.S. dollar and profit-taking by oil traders following a strong rebound.  

Additionally, a severe storm in the northeastern United States affected short-term demand, limiting the upside potential for oil prices. 

Last week, crude oil successfully broke through previous resistance levels and continued its upward trend. However, after reaching a historical high of $77.3 per barrel on Friday, the upward momentum faltered, and prices started to decline.  

The weekly chart shows a small bullish candlestick with an upper shadow, indicating a setback for the bullish trend despite the continuation of a three-week consecutive upward trend. In the short term, oil prices have shifted from an upward oscillation to a downward oscillation pattern. 

Technical Analysis: 

Today’s trading strategy suggests focusing on short positions during upward rebounds and considering long positions during pullbacks.  

• Key resistance levels to watch in the short term are between 75.9 and 76.4. 
• Key support levels to monitor in the short term are between 73.8 and 73.3. 

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