Gold Weekly Records Fifth Consecutive Gain, Crude Oil Falls Approximately 3%

Due to heightened risk aversion amid the situation in Iran, but with diminishing expectations of Fed rate cuts and various parties digesting the impact of Israel’s attack on Iran, gold prices fluctuated last Friday, closing slightly up by 0.57%.

Weekly-wise, they rose by 1.95%, marking the fifth consecutive week of gains. Concerns about disruptions in oil supply due to tense geopolitical situations led to a slight increase in oil prices last Friday, but they have fallen by about 3% since last Monday, recording the largest weekly decline since February.

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Last Friday, due to heightened risk aversion amid the situation in Iran, but with diminishing expectations of Fed rate cuts and various parties digesting the impact of Israel’s attack on Iran, spot gold once breached the USD 2410 mark, but the gains narrowed, closing up by 0.57% at USD 2391.77 per ounce.

Weekly-wise, it rose by 1.95%, marking the fifth consecutive week of gains. Earlier last Friday, explosions echoed over a city in Iran, with sources claiming it was an attack launched by Israel. However, Tehran downplayed the incident, stating that there were no plans for retaliation.

Market analysts noted that the escalation and de-escalation of the situation in the Middle East have been influencing the market. If the situation truly eases, gold may see a pullback or consolidation as safe-haven buying diminishes.

However, in the long term, the upward trend in gold is expected to continue, as the Fed may not cut rates as quickly as the market expects. Gold prices experienced volatile swings during the Asian session last Friday, with significant fluctuations driven by market news.

Prices surged significantly during the Asian session, breaking through the USD 2417 level before quickly retreating, falling further to around USD 2380 in the afternoon and entering a sideways consolidation phase.

In the evening US session, there were two attempts to test lower levels, stabilizing around the USD 2373 mark before a rapid rebound. Ultimately, gold prices closed with oscillations around the USD 2401 level in the early morning.

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 2370-2365.

WTI Crude Oil >>  

Last Friday, oil prices saw a slight increase, but weekly performance recorded the largest decline since February.

Concerns about interruptions in crude oil supply due to tense geopolitical situations led to a surge of 4% in WTI crude oil prices, which encountered resistance at USD 85 before turning downwards, almost giving back all the intraday gains.

WTI crude eventually closed up by 0.27% at USD 82.07 per barrel, while Brent crude rose by 0.33% to USD 87.15 per barrel. As geopolitical risk premiums in oil gradually recede, oil prices have fallen by around 3% since last Monday. Both benchmark indices recorded their largest weekly declines since February.

However, investors do not rule out the possibility of Middle East tensions disrupting supply. The Middle East accounts for about one-third of global crude oil supply. Last Friday, overall oil prices experienced a volatile downward trend under the stimulus of market news.

During the Asian-European session, prices quickly strengthened, relying on the USD 82.5 level, then surged, breaking through the $86 level before retracting, oscillating downward continuously.

Bullish and bearish sentiments rapidly changed within the day, and ultimately, during the evening US session, prices pierced the USD 82 level, stabilized, rebounded weakly, and closed with a downward bias.

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 83.5-84.0.
  • Key support levels to monitor in the short term are around 81.0-80.5.

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