Early Friday in Asian trading, spot gold was hovering around $4,613.90 per ounce. Gold retreated from record highs on Thursday after strong US labor market data and signs of easing geopolitical tensions.
Meanwhile, US crude was trading near $59.08 per barrel, with oil prices plunging more than 3% on Thursday, snapping a five-day winning streak, pressured by President Trump’s comments suggesting easing tensions with Iran and a sharp rise in US crude inventories.
Gold
Gold pulled back from record highs on Thursday, weighed down by strong US employment data and reduced geopolitical risk. Spot gold slipped 0.1% to $4,614.93 per ounce, while US gold futures fell 0.3% to $4,623.70 per ounce.
The decline was driven by two main factors. First, US weekly jobless claims unexpectedly fell, pushing the US dollar index to a multi-week high. A stronger dollar makes gold more expensive for holders of other currencies.
Second, safe-haven demand eased after President Trump said Iran’s handling of domestic protests appeared to be calming, signaling a possible pause in escalation, which reduced gold’s appeal as a risk hedge.
Trump also stated that there are no immediate plans to remove Federal Reserve Chair Jerome Powell, though he did not rule out the possibility in the future. Markets broadly expect the Fed to keep rates unchanged at its upcoming meeting, while still pricing in at least two rate cuts later this year, which continues to provide longer-term support for gold.
From a technical perspective, gold remains in a high-level consolidation phase on the 4-hour chart, with prices currently oscillating between $4,580 and $4,640. Short-term moving averages have flattened and converged, suggesting a consolidation bias.
On the 1-hour chart, $4,580 remains a key support level. After the recent pullback, prices have gradually stabilized, short-term moving averages are starting to turn higher, and candles are moving back above these averages, indicating potential for further short-term rebound, pending confirmation of follow-through.
Today’s Focus:
Trading strategy favors buying on pullbacks, with selling on rallies as a secondary approach.
- Short-term resistance: $4,630–$4,650
- Short-term support: $4,580–$4,560
Oil
Oil prices dropped sharply on Thursday, falling more than 3% and ending a five-day rally, as markets reacted to Trump’s comments signaling easing tensions with Iran, combined with a surge in US crude inventories.
Brent crude slid 4.15% to $63.76 per barrel, while WTI crude tumbled 4.56% to $59.19 per barrel. The sell-off reflected a rapid unwinding of geopolitical risk premiums.
Trump said he had been informed that Iran’s actions during domestic unrest were easing, with no signs of large-scale executions, signaling a more cautious US stance. Analysts noted this significantly reduced short-term fears of escalation between the US and Iran, as well as concerns over disruptions to Iranian oil supply.
Technically, on the daily chart, oil had previously broken above $60.50, but follow-through was weak, keeping prices locked in a volatile consolidation range with downside risk still present.
On the 1-hour chart, oil reversed sharply after touching $62.20, forming a large bearish candle that erased most of the day’s gains. Short-term momentum has shifted into a choppy, range-bound structure, and the probability of an immediate breakout to new highs remains low.
Today’s Focus:
Trading strategy favors selling on rebounds, with buying on dips as a secondary approach.
- Short-term resistance: $60.5–$61.5
- Short-term support: $58.0–$57.0
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