Gold
On Wednesday, a stronger dollar, rising US Treasury yields, and hawkish comments from Federal Reserve officials dampened market sentiment, causing spot gold to fall to a two-week low. Gold prices ultimately closed down 1% at $2337.73 per ounce.
The dollar index rose 0.49% on Wednesday, peaking at 105.19, the highest since May 14, making gold more expensive for investors holding other currencies.
U.S. Treasury yields climbed to a four-week high across the board, and weak demand in Treasury auctions, along with cautious comments from Federal Reserve officials about the timing of easing cycles, further weighed on market sentiment.
Investors are now focusing on the U.S. Core Personal Consumption Expenditures (PCE) Price Index report due Friday for more clues on the timing and scale of potential rate cuts.
Technical Analysis:
Yesterday, during the Asian and European sessions, gold faced pressure at the $2363 level, experiencing a downward correction and breaking its previous low.
Throughout the day, gold trended downward, with weak rebounds in the evening U.S. session meeting resistance at the $2347 level and continuing to weaken.
Today’s Focus:
- Short-term strategy: Recommend shorting on rebounds and buying on dips.
- Resistance: $2352-$2357
- Support: $2325-$2320
Oil
On Wednesday, concerns over weak U.S. gasoline demand and economic data, which could lead to the Federal Reserve maintaining higher interest rates for a longer period, weighed on oil prices.
WTI crude continued to fall during the European session, losing the $80 level, and closed down 1.22% at $79.24 per barrel. Brent crude closed down 1.12% at $83.32 per barrel.
Investors were optimistic about the labor market, with U.S. consumer confidence unexpectedly improving in May after three consecutive months of decline. However, inflation concerns remain, with expectations that rates will rise next year.
The latest API report showed a significant drop in crude oil inventories by 6.49 million barrels, more than the market expectation of 1.9 million barrels; gasoline inventories fell by 450,000 barrels, but distillate inventories unexpectedly increased by 2.045 million barrels.
Investors should also watch for the EIA crude oil inventory data due later tonight, which was delayed to Thursday this week.
Technical Analysis:
Yesterday, during the Asian and European sessions, oil prices saw a slight rebound but faced resistance at the $80.6 level, leading to a downward correction.
The daily K-line chart showed a pressured decline, with overall prices encountering resistance and falling below the $80 level. In the short term, the daily chart indicates continued wide-range oscillation.
Today’s Focus:
- Short-term strategy: Recommend buying on dips and shorting on rebounds.
- Resistance: $80.5-$81.0
- Support: $78.0-$77.5
