Gold Price Capped at 2400 Level, Oil Prices Slightly Decline

Due to the continued tension in the Middle East, which has brought about a demand for safe-haven assets, it offset the expected decrease in the number of interest rate cuts in the United States this year. On Tuesday, gold prices remained steady, being capped at the 2400 level.

Economic headwinds have put pressure on investor sentiment, dampening the gains from geopolitical tensions. Oil prices saw a slight decline, with the market focusing on the latest developments between Israel and Iran.

Gold >>

On Tuesday, the demand for safe-haven assets due to the continued tension in the Middle East offset the expectations of fewer interest rate cuts in the United States this year, keeping gold prices steady.

Spot gold approached the key level of 2400 during the session but later retreated slightly, ultimately closing down 0.01% at USD 2382.93 per ounce. Western countries are planning to swiftly impose new sanctions on Iran to help deter Israel from taking significant escalation actions.

Israel’s wartime cabinet postponed its third meeting to Wednesday, originally scheduled for Tuesday. Investors this week need to closely monitor the release of several important economic data points and speeches by Federal Reserve officials.

In terms of gold’s technical aspects yesterday, it continued to fluctuate within the recent wide range of bullish and bearish swings. During the Asian and European sessions, there was slight oscillation and consolidation above 2385.

In the afternoon European session, it faced pressure around the 2389 level, quickly declining to around 2363 before stabilizing and rebounding into a sideways consolidation.

During the late US session, it tested support again around 2363, experiencing a bullish rebound and breaking through the resistance at 2398 before facing downward pressure and closing with oscillations.

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 2400-2405.
  • Key support levels to watch in the short term are around 2368-2360.

WTI Crude Oil >>  

On Tuesday, economic headwinds put pressure on investor sentiment, dampening the gains from geopolitical tensions. Oil prices saw a slight decline, with the market focusing on the latest developments between Israel and Iran.

WTI crude oil fluctuated downward, ultimately closing down 0.46% at USD 85.21 per barrel, while Brent crude oil fell 0.37% to USD 90.02 per barrel. Federal Reserve Chairman Powell stated on Tuesday that a series of disappointing data showed inflation to be stronger than expected.

This suggests that the Fed may need more time than previously thought to be confident that inflation is on track to reach 2%. Influenced by hawkish remarks from Fed officials, market expectations for Fed rate cuts were further delayed.

The US dollar index continued its upward trend on Tuesday, reaching a fresh five-and-a-half-month high of 106.52 during the session. Meanwhile, the yield on the US 10-year Treasury bond hit a five-month high of 4.696%, putting slight pressure on oil prices.

In terms of oil price technicals yesterday, there was a narrow range of bullish and bearish consolidation. During the Asian and European sessions, it faced pressure around the USD 86 level, quickly oscillating downward.

In the afternoon, it further retraced downwards, breaking below the USD 85 level to reach around USD 84.80 before stabilizing and rebounding. During the US session, it closed near USD 85.20 with slight downward oscillations, continuing the narrow range of bullish and bearish consolidation.

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 87.0-87.5.
  • Key support levels to monitor in the short term are around 84.5-84.0.

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