RSS Gold Rises and WTI Crude Gains

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 RSS Gold Rises and WTI Crude Gains

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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

  1. 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.
  2. Geopolitical Risks: Ongoing trade tensions and rising geopolitical uncertainties drove demand for gold, cementing its appeal among risk-averse investors.
  3. 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


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