Gold

On Thursday, gold prices fell more than 1%, dropping below the $2,500 mark, pressured by a rebound in the US dollar and rising Treasury yields.

Spot gold faced selling pressure, dipping as low as $2,470 during the session before closing down 1.1% at $2,484.8 per ounce, marking its largest single-day drop since early August.

The market is now focused on Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole symposium for more clues on the potential for rate cuts.

The US Dollar Index rose 0.38% to 101.50, rebounding from a 13-month low. US 10-year Treasury yields climbed 8.6 basis points to 3.861%, contributing to the gold price pullback.

Traders now see a 25% chance of a 50 basis point rate cut next month, down from 38% on Wednesday, while the likelihood of a 25 basis point cut stands at 75%. B

esides Powell’s speech, investors will also be watching for geopolitical developments and other Fed officials’ comments, along with US July new home sales data.

Gold Technical Analysis:

In technical terms, gold faced resistance at $2,514 during the Asian session, triggering a pullback. The price saw a slow rise in the afternoon but encountered further resistance at $2,510, leading to a decline. The New York session saw accelerated selling, pushing gold below both $2,490 and $2,480 before stabilizing near $2,470.

Today’s Focus:

Today’s short-term strategy for gold suggests favoring short positions on rebounds, with buy opportunities on dips.

• Resistance: $2,495–$2,500
• Support: $2,475–$2,470

Oil

On Thursday, oil prices rebounded over 1% after four consecutive days of losses, driven by expectations of a US rate cut in the coming weeks. A Greek-flagged oil tanker was attacked in the Red Sea, and reports emerged that Israel is pushing for a military presence in Gaza, complicating ceasefire talks and heightening geopolitical tensions.

WTI crude gained 1.45%, closing at $72.92 per barrel, while Brent crude rose 1.34%, settling at $77.08 per barrel.

The minutes from the Fed’s July meeting indicated that most policymakers are leaning toward a rate cut next month. Traders will be closely watching Fed Chair Jerome Powell’s speech on Friday at the Jackson Hole symposium for indications of whether a 25 or 50 basis point cut is likely.

Meanwhile, the US Labor Department reported a slight increase in initial jobless claims, aligning with a gradual cooling of the labor market and creating conditions for a rate cut. Investors are also monitoring OPEC+ discussions, particularly the potential reconsideration of plans to gradually lift production cuts in October.

Oil Technical Analysis:

In technical trading, oil prices saw choppy action around the $72 level before staging a strong rebound in the New York session, breaking above $73 and briefly testing $73.5 before settling.

Today’s Focus:

Today’s short-term strategy for oil suggests favoring short positions on rebounds, with buy opportunities on dips.

• Resistance: $74.0–$74.5
• Support: $72.0–$71.5

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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. 

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