Weak Dollar Boosts Gold Prices, U.S. and Brent Oil Surge Over 4%

The weakening of the U.S. dollar and U.S. Treasury yields has sparked expectations of the Federal Reserve ending monetary policy tightening.

Gold prices recorded their largest weekly gain in almost four weeks. While oil prices surged over 4% last Friday, marking the fourth consecutive weekly decline, market attention is focused on this week’s OPEC meeting.

Gold >>

In Monday’s Asian session, the price of gold is currently trading at $1973 per ounce. Gold gained bullish momentum last week, rebounding over 2% from the three-week low reached on the previous Friday.

Due to the weakening U.S. dollar and U.S. Treasury yields, there is growing anticipation that the Federal Reserve will end its monetary policy tightening, resulting in gold achieving its largest weekly gain in four weeks. Data released last week confirmed the likelihood of the Fed ending rate hikes, boosting gold prices.

Last Friday, the technical aspect of gold saw a slight rise in the Asian-European session, breaking above the 1990 level but facing resistance around the 1993 level, leading to a consolidation and adjustment.

During the U.S. session, there was a second attempt to breach the resistance at 1991, but gold fluctuated lower, breaking below the 1980 level at the close.

Technical Analysis:

Today’s short-term strategy for gold suggests a focus on short positions during rebounds, with long positions considered as a secondary option during pullbacks.

  • Key resistance levels to watch in the short term are around 1993-1998.
  • Key support levels to watch in the short term are around 1965-1960.

WTI Crude Oil >>

Last Friday, U.S. crude oil closed up $2.99 per barrel, a 4.1% increase, settling at $75.89 per barrel, but experienced a cumulative decline of 1.66% for the week. Brent crude oil futures settlement price rose by $3.19 per barrel, a 4.12% increase, closing at $80.61 per barrel.

Oil prices surged over 4% on Friday, rebounding from a four-month low touched in the previous trading session, supported by profit-taking from short-position investors and U.S. sanctions on certain Russian oil shippers.

Despite significant recent declines due to supply concerns and a notable decrease in demand, oil prices rebounded significantly on Friday, driven by ongoing geopolitical tensions and macroeconomic concerns, potentially extending this trend into the next week.

On Friday, the technical aspect of oil prices stabilized around the 72.9 level, showcasing a robust bottoming and recovery. During the Asian, European, and U.S. sessions, consecutive rebounds broke through and held above the $75 level, demonstrating a strong rebound pattern.

The daily candle closed with a strong bottoming and recovery, presenting an overall supportive stabilization around the $72 level.

Technical Analysis:

Today’s crude oil trading strategy suggests a primary focus on long positions during pullbacks and secondary consideration for short positions during upward rebounds.

  • Key resistance levels to monitor in the short term are around 77.5-78.0.
  • Key support levels to monitor in the short term are around 75.0-74.5.

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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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