Gold
On Tuesday, despite support from expectations of a September rate cut and escalating Middle East geopolitical tensions, gold prices fell below the $2,400 mark. This drop was driven by easing recession fears, a stronger dollar, and rising bond yields.
Spot gold remained under pressure and closed down 0.84% at $2,389.10 per ounce.
The US dollar index rose by 0.2%, and the 10-year Treasury yield also increased as markets reassessed the immediate risk of a US recession. The rebound in stock markets reduced the safe-haven demand for US Treasuries.
Fed policymakers refuted concerns that weak July employment data indicated an impending recession but cautioned that rate cuts might still be necessary to prevent such an outcome.
Today, investors will focus on China’s July trade data, Fed officials’ remarks, geopolitical developments, US election news, and the performance of US stocks.
Gold Technical Analysis:
Gold’s technical performance showed a significant pullback from the $2,418 resistance level. In the European session, prices initially spiked to $2,418 before retreating and fluctuating. The decline continued in the US session, where gold eventually broke below $2,390, closing weakly around $2,380.
Today’s Focus:
Today’s gold trading strategy suggests prioritizing short positions on rebounds, with secondary long positions on pullbacks.
- Key Resistance: $2,402-$2,407
- Key Support: $2,370-$2,365
Oil
On Tuesday, although financial markets recovered from recent lows, oil prices continued their weak trend, failing to move far from the six-month lows touched on Monday.
WTI crude briefly rebounded above $73 in the US session but gave up most gains to close down 1.33% at $72.42 per barrel. Brent crude also fell, closing down 1.17% at $76.20 per barrel.
The US Energy Information Administration (EIA) released its Short-Term Energy Outlook, predicting a tighter supply-demand balance in the US oil market but lowered its price forecasts. The EIA revised its 2025 global oil demand forecast down to 104.5 million barrels per day from 104.7 million.
Concerns over reduced output from Libya’s 300,000-barrels-per-day Sharara field added to supply worries. Decreasing crude and refined product inventories at major trading hubs also supported prices.
Investors should watch for EIA crude inventory data, geopolitical events, and global stock market performance, along with China’s July trade data.
Oil Technical Analysis:
Oil’s technical pattern continued its recent downward trend. The European session saw prices oscillate around the $74-$74.3 range before sharply falling. In the US session, prices dipped below $73 and continued to weaken, bottoming at $72.2 before a slight rebound. The session closed with prices facing resistance at $73.9.
Today’s Focus:
Today’s oil trading strategy suggests prioritizing short positions on rebounds, with secondary long positions on pullbacks.
- Key Resistance: $74.0-$74.5
- Key Support: $72.0-$71.5
Risk Disclosure
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.
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.
