Geopolitical Tensions Rise, Gold and Oil Prices Slightly Increase

The Middle East conflict boosts the safe-haven On Monday, the escalation of the Middle East conflict boosted the safe-haven appeal of gold, leading to a slight increase in gold prices.

Spot gold continued the rebound momentum from last Friday, fluctuating near the 2020 level throughout the day and eventually closing up 0.23% at USD 2017.89 per ounce; COMEX gold closed up 0.26% at USD 2029.4 per ounce.

After briefly breaking below a key support level last week, gold continued its rebound from a one-month low, but concerns about a long-term increase in US interest rates largely kept gold prices within a range-bound pattern.  appeal of gold, with gold prices continuing to rebound on Monday, edging up slightly; signs of weakened demand offset concerns over tight supply, leading to a slight increase in oil prices.

Gold >>

 

In early February, stronger-than-expected US inflation data led traders to largely dismiss the prospect of the Fed cutting rates prematurely, causing gold to briefly dip below USD 2000.

Although gold rebounded above the USD 2000 level in the past two trading days, it has remained within the trading range established since mid-January, between USD 2000 and USD 2050 per ounce. Gold has struggled to make progress in the face of rising US inflation and hawkish interest rate prospects.

Technically, gold prices rose slightly in early trading, extending the rebound momentum from last Friday, but remained in a narrow range near the 2011 level throughout the day, with a second rebound attempt breaking through the 2022 level in the afternoon before being suppressed and falling back into a fluctuating decline.

During the evening session, the US market continued to fluctuate downward to around 2013 before rebounding and closing near that level.

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 2025-2030.
  • Key support levels to watch in the short term are around 2010-2005.

WTI Crude Oil >>

On Monday, concerns over the supply disruptions stemming from the tense situation in the Middle East persisted, but signs of weakening demand offset these worries. WTI crude oil closed up 0.02% at USD 78.18 per barrel, while Brent crude oil closed up 0.07% at USD 83.38 per barrel.

The Middle East conflict continued over the weekend, with Israel launching another attack on the Gaza Strip and Houthi militants attacking a tanker bound for India.

The International Energy Agency’s (IEA) downward revision of demand forecasts, along with higher-than-expected US producer price inflation in January, exacerbated inflation concerns and boosted the US dollar, factors that all suppressed oil price gains.

Technically, amid volatile trading, oil prices saw another bullish rally. During the Asian and European sessions, there was a slight retracement followed by stabilization around the USD 77.6 level, leading to a rebound.

In the late US session, oil prices continued to rise, breaking through the previous Friday’s high of USD 78.5, and closed with strong 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 79.0-80.0.
  • Key support levels to monitor in the short term are around 76.0-75.0.

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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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