KEY HIGHLIGHTS
- Gold Rises to $2,620 Amid Global Uncertainty.
- Silver Hits 3-Month Low at $29.50.
- WTI Crude Gains on Inventory Decline…
- Natural Gas Jumps 2.5% on Cold Weather Outlook.
INTRODUCTION
Gold prices continued their recovery from a one-month low, rising to $2,620 amid a risk-off sentiment fueled by the Federal Reserve’s hawkish stance. Simultaneously, West Texas Intermediate (WTI) crude oil posted modest gains, approaching $69.50, supported by a decline in U.S. crude inventories and a resilient demand outlook. Here’s a comprehensive breakdown of the market movements and technical insights.
Gold Market Overview
Gold (XAU/USD) prices climbed to $2,620 during Thursday’s early European session, marking a fresh daily high of $2,622. The precious metal benefited from haven flows as geopolitical tensions and trade concerns grew following the Federal Reserve’s hawkish 25-basis-point rate cut. This shift in risk sentiment underscores investors’ preference for gold as a safe-haven asset.
Key Drivers for Gold
- Federal Reserve Policy: The Fed’s December rate cut and signals of a slower pace of future cuts bolstered U.S. Treasury yields, indirectly supporting the U.S. dollar. However, gold’s recovery persisted despite the dollar holding near a two-year high.
- Geopolitical Risks: Ongoing trade tensions and rising geopolitical uncertainties drove demand for gold, cementing its appeal among risk-averse investors.
- Technical Sentiment: Despite the bullish recovery, caution is warranted due to resistance near $2,622 and strengthening U.S. Treasury yields.
Technical Analysis
- Moving Averages: Bearish momentum persists across short- and long-term exponential and simple moving averages.
- MA 10: $2,640.65 (Bearish)
- MA 20: $2,647.14 (Bearish)
- MA 50: $2,643.00 (Bearish)
- Indicators:
- RSI: 45.23 (Neutral)
- Stochastic Oscillator: 18.21 (Neutral)
- Support and Resistance Levels:
- Resistance: R1: $2,735.87 | R2: $2,789.05
- Support: S1: $2,563.71 | S2: $2,510.53
Trade Suggestion: Limit Sell at $2,631.73 | Take Profit: $2,580.03 | Stop Loss: $2,673.42
Silver Market Update
Silver (XAG/USD) continued its downward trajectory, dropping to a three-month low around $29.50 per troy ounce. The metal faces headwinds from declining industrial demand and an overcapacity in China’s solar panel sector.
Technical Analysis
READ FULL REPORTS AT CAPITAL STREET FX
1 post - 1 participant
Read full topic