Gold
On Monday, gold prices came under pressure after breaking above $2,500 last Friday. Early trading saw a surge to a new all-time high, but investors took profits from the record-breaking rally, and adjustments were made based on signals from the Federal Reserve and developments in the Middle East.
Despite a sharp dip that nearly erased all of the day’s losses, spot gold recovered, closing down 0.14% at $2,504.31 per ounce.
The market now turns its focus to the minutes from the Federal Reserve’s last policy meeting, which will be released on Wednesday, and Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium on Friday.
The US dollar hit a seven-month low on Monday, touching 101.83, its lowest level since January 2, before closing at 101.86, providing support for gold prices.
Traders are eagerly awaiting Powell’s speech, where he is expected to signal a potential rate cut in September. The focus will be on whether he hints at a 25 or 50 basis point cut and if future rate cuts will be suggested for upcoming meetings. Additionally, ongoing geopolitical tensions in the Middle East could further boost gold prices.
Gold Technical Analysis:
Gold prices on Monday fluctuated strongly above $2,485, peaking at $2,507 during the European session before pulling back. It briefly dipped below $2,490, settling near $2,485 before rebounding in the US session to close above $2,505.
Today’s Focus:
For short-term gold trading today, the strategy suggests buying on dips as the primary approach, with selling on rebounds as a secondary option.
- Key Resistance: $2,520–$2,525
- Key Support: $2,485–$2,480
Oil
Oil prices fell by over $2 on Monday, reaching near two-week lows. The potential success of peace talks in the Middle East reduced supply risks, while economic weakness in major oil-importing nations raised concerns about future demand.
US Secretary of State Antony Blinken highlighted Washington’s latest diplomatic efforts to secure a ceasefire in Gaza, urging all parties to reach an agreement. Additionally, economic concerns in major Asian countries added pressure on oil prices.
Data from last week showed that new home prices in these regions fell at the fastest pace in nine years. Due to weak fuel demand, Asian refiners significantly reduced crude processing rates last month.
The market is now focused on Powell’s upcoming speech at the Jackson Hole symposium and today’s release of API crude inventory data, alongside any updates on geopolitical developments.
Oil Technical Analysis:
WTI crude accelerated its losses during the US session, hitting a low of $73.37 per barrel before closing down 2.2% at $73.74 per barrel. Brent crude also declined, closing down 2.14% at $77.38 per barrel.
Today’s Focus:
For short-term oil trading today, the strategy suggests selling on rebounds as the primary approach, with buying on dips as a secondary option.
- Key Resistance: $74.5–$75.0
- Key Support: $72.5–$72.0
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Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
