The U.S. initial jobless claims data performed strongly, causing investors to worry about the timing of interest rate cuts in the U.S. and the robust performance of American corporate activities.  

Gold prices continued their downward trend, accumulating a decline of over USD 90 in the past two trading days. The prospect of U.S. interest rates remaining high for an extended period has raised concerns about the growth in demand in the world’s largest oil market.  

Consequently, international crude oil prices fell for the fourth consecutive trading day, hitting a three-month low. 

Gold >>   

On Thursday, the U.S. initial jobless claims data performed strongly, causing investors to worry about the timing of interest rate cuts in the U.S. and the robust performance of American corporate activities.  

Gold prices continued their downward trend, falling more than USD 90 over the past two trading days. Spot gold experienced relentless declines, dropping USD 50 during the day and falling below the USD 2,330 level, ultimately closing down 2.15% at USD 2,327.69 per ounce, marking a new low since May 9. 

The U.S. Department of Labor stated on Thursday that for the week ending May 18, the number of initial state unemployment claims, seasonally adjusted, decreased by 8,000 to 215,000.  

Economists had widely expected claims to be higher, at 220,000. In addition to the positive labor market data, the hawkish sentiment reflected in the minutes of the Federal Reserve’s monetary policy meeting also exerted strong selling pressure on the gold market. 

Gold prices declined across the Asian, European, and American trading sessions yesterday. The Asian session saw a slight rebound that was capped at the USD 2,383 level before falling directly to new lows.  

In the afternoon, prices remained suppressed below USD 2,375, trading weakly in a sideways pattern. In the evening U.S. session, a second rebound was capped at the USD 2,369 level, leading to an accelerated downward movement, eventually breaking through the USD 2,350 and USD 2,340 levels to close weakly near USD 2,326. 

Technical Analysis: 

Today’s short-term strategy for gold suggests prioritizing short positions during rebounds, with long positions considered as a secondary approach during pullbacks. 

• Key resistance levels to watch in the short term are around 2350-2355. 
• Key support levels to watch in the short term are around 2315-2310.  

WTI Crude Oil >>  

On Thursday, the prospect of U.S. interest rates remaining high for an extended period raised concerns about the growth in demand in the world’s largest oil market. As a result, international crude 

On Thursday, the prospect of U.S. interest rates remaining high for an extended period raised concerns about the growth in demand in the world’s largest oil market.  

Consequently, international crude oil prices declined for the fourth consecutive trading day, hitting a three-month low.  

WTI crude oil exhibited an inverted V-shaped trend, giving up all its intraday gains during the U.S. trading session, and ultimately closed down 0.38% at USD 76.91 per barrel. Brent crude oil closed down 0.23% at USD 81.47 per barrel. 

The decline in initial jobless claims in the U.S. last week indicates that the underlying strength in the labor market should continue to support the economy.  

Strong U.S. data further dampened expectations for Federal Reserve interest rate cuts, with some market participants even betting on rate hikes.  

Additionally, U.S. corporate activity in May accelerated to its highest level in over two years, but manufacturers reported a series of sharp increases in input prices, suggesting that commodity inflation might rise in the coming months. 

Yesterday, oil prices technically stabilized at the USD 76.90 level during the Asian and European sessions, leading to a strong upward movement.  

In the evening U.S. session, prices accelerated further, breaking through the USD 78 level and reaching USD 78.60 before quickly falling back. By early morning, oil prices had tumbled down past the USD 77 level, closing weakly around USD 76.40. 

Technical Analysis: 

Today’s crude oil trading strategy suggests prioritizing short positions during rebounds, with long positions considered as a secondary approach during pullbacks 

• Key resistance levels to monitor in the short term are around 78.0-78.5. 
• Key support levels to monitor in the short term are around 75.5-75.0. 

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