Gold
On Thursday, gold prices rose by over 1%, breaking a five-day losing streak, driven by strong safe-haven demand and growing expectations of a significant interest rate cut by the Fed in September.
Spot gold continued to climb throughout the day, reaching above $2,420 before the US session, marking a gain of nearly $50 from the day’s low, and closed up 1.86% at $2,427.12 per ounce.
US data showed that initial jobless claims for the previous week stood at 233,000, lower than the economists’ forecast of 240,000 and down from the previous week’s 250,000. This alleviated fears of an economic slowdown in the world’s largest economy.
The data also helped US stocks rebound, ending a global sell-off, with money flowing back into the gold market. Investors are now looking ahead to next week’s US July CPI data, which could influence market sentiment. Additionally, developments in the Middle East geopolitical situation remain a key focus.
Gold Technical Analysis:
Technically, gold showed strong bullish momentum on Thursday, climbing higher in a volatile session. Prices initially found support at $2,380, gradually moving upwards during the European session.
The upward trend continued as prices broke above the $2,395 level in the US session, followed by a sharp rally that saw gold pierce the $2,415 resistance and ultimately close strongly above $2,427.
Today’s Focus:
For today’s gold trading strategy, consider buying on dips as the primary approach, with selling on rallies as a secondary strategy.
- Key resistance: $2,435-$2,440
- Key support: $2,410-$2,405
Oil
On Thursday, oil prices rose over 1% for the third consecutive day, supported by US employment data that eased demand concerns and escalating tensions in the Middle East.
The settlement price for the WTI crude oil futures contract was $76.19 per barrel, up $0.96 or 1.3%. The Brent crude futures contract settled at $79.16 per barrel, up $0.83 or 1.1%.
Data indicated that US initial jobless claims declined more than expected last week, suggesting that fears of a sharp downturn in the labor market may be overblown, providing a boost to oil prices.
Additionally, investors continued to digest the report from the EIA on Wednesday, which showed US crude oil inventories falling for the sixth consecutive week, reaching a six-month low and providing further support to oil prices.
Analysts at ANZ noted that this significant decline indicates strong physical demand despite broader economic concerns.
Oil Technical Analysis:
Technically, oil prices showed strong upward momentum on Thursday, with the market finding support at $74.6 during the European session before rallying sharply during the US session, breaking above the $76 resistance and closing strongly.
Today’s Focus:
For today’s oil trading strategy, consider buying on dips as the primary approach, with selling on rallies as a secondary strategy.
- Key resistance: $77.5-$78.0
- Key support: $75.0-$74.5
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Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
