Markets saw mixed action on Tuesday as gold surged on safe-haven demand following a surprise US credit rating downgrade by Moody’s. Meanwhile, oil prices edged up slightly, supported by optimism over potential ceasefire talks between Russia and Ukraine and ongoing nuclear negotiations with Iran.
Gold Market Recap
Gold prices briefly spiked toward the $3,250 level on Monday before settling at $3,230.07, lifted by a weaker dollar and renewed safe-haven buying after Moody’s downgraded the US government’s credit rating.
The global financial community was rattled after Moody’s Investors Service cut the US sovereign credit rating from “Aaa” to “Aa1”, citing “a debt and interest burden far exceeding that of peer nations.” The move dealt a blow to the dollar’s dominance and spurred immediate demand for gold.
The US Dollar Index dropped 0.6%—its lowest since May 8. US equities came under pressure while gold surged, with spot prices approaching $3,250 per ounce.
“In the context of the US downgrade, gold remains a safe bet,” said Bob Haberkorn, senior strategist at RJO Futures.
Gold – Technical Overview
Gold opened with a slight gap-up during the Asia session and extended gains through the morning. In the European session, it briefly pierced the $3,248 level before pulling back. During the US session, prices came under pressure near $3,245 and retreated to close around $3,230, ending the day in a consolidation pattern.
Gold – Today’s Strategy
Wait patiently for key levels before entering new positions.
- Resistance to watch: $3,250–$3,255
- Support to watch: $3,180–$3,185
Crude Oil Market Recap
Oil prices closed slightly higher as investors tracked developments in peace talks and nuclear negotiations.
President Trump said Monday that Russia and Ukraine would “immediately” begin ceasefire negotiations following a call with President Putin. The news boosted sentiment and helped oil hold onto gains.
Brent crude settled around $65.50 per barrel, while WTI crude futures rose 0.3% to close at $62.69.
Meanwhile, uncertainty around the Iran nuclear deal kept volatility elevated. Iran’s President Masoud Pezeshkian stated on national TV that Tehran will not abandon its pursuit of civilian nuclear energy under any circumstances, further clouding diplomatic progress.
Crude Oil – Technical Overview
WTI held steady above the $61 level, supporting continued bullish momentum. After a mild pullback in the Asia-European session, prices regained strength and broke through the $62 mark in the US session. A late-session surge saw prices touch $62.70 before retreating slightly into the close. The daily chart closed with a small bullish candle, signaling steady upward momentum.
Crude Oil – Today’s Strategy
Maintain a bullish bias and trade with the prevailing trend.
- Resistance to watch: $61.8–$62.0
- Support to watch: $61.5–$61.3
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