Supported by strong economic data, coupled with the unexpected rate cut by the Swiss National Bank and dovish signals from the Bank of England, the US dollar index rebounded, causing gold prices to give back gains.  

Meanwhile, oil prices also edged lower due to soft US gasoline demand data and reports on a draft resolution calling for a ceasefire in Gaza by the United Nations.  

Gold >> 

As the US dollar index rebounded, gold prices retraced their gains, as initial jobless claims in the US unexpectedly fell last week and existing home sales in February saw the largest increase in a year, indicating continued robustness in the economy for the first quarter.  

On Thursday, spot gold closed at USD 2,181.13 per ounce, down approximately 0.23%. The US Department of Labor reported that initial jobless claims dropped by 2,000 to 210,000 for the week ending March 16, seasonally adjusted, below the prior forecast of 215,000.  

Additionally, the National Association of Realtors (NAR) stated that existing home sales surged by 9.5% last month, with the seasonally adjusted annual rate reaching 4.38 million units, marking the highest level since February 2023.  

Supported by strong economic data, coupled with the Swiss National Bank’s unexpected rate cut and dovish signals from the Bank of England, the US dollar index surged by 0.58% to close at 104.02, marking its highest closing price for March. 

In yesterday’s early trading, the gold market opened slightly higher at USD 2,184.90 per ounce. Subsequently, prices rose directly in the morning session, reaching a weekly high of USD 2,223, a historical high.  

However, prices retreated from the highs during the session, influenced by fundamental pressures during the American session. The daily low touched USD 2,166 per ounce, and gold finally closed at USD 2,181.20 per ounce.  

The candlestick pattern formed a hammer shape with a long upper shadow and a shorter lower shadow, indicating profit-taking by bulls in the daily technical analysis. 

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 2187-2188. 
• Key support levels to watch in the short term are around 2165-2167. 

WTI Crude Oil >> 

Due to soft US gasoline demand data and reports regarding the United Nations’ resolution draft calling for a ceasefire in Gaza, oil prices edged slightly lower on Thursday. Brent crude futures fell by USD 0.17, or 0.2%, to USD 85.78 per barrel, while US crude futures dropped by USD 0.20, or 0.3%, to USD 81.07 per barrel. 

The unexpected decrease in the number of new applications for unemployment benefits in the US last week indicates continued strong job growth in March, providing support for oil prices. However, the surge in the US dollar index due to strong economic data exerted slight pressure on oil prices.  

News of the United States drafting a UN resolution calling for a ceasefire raised market concerns, also weighing on oil prices. In the crude oil market, yesterday’s opening was at USD 81.86 per barrel. Prices initially rose, reaching a daily high of USD 82.33 per barrel, and dropped to a daily low of USD 80.71 per barrel.  

Prices then found support and consolidated around the 23.6% Fibonacci retracement level of the recent upward movement. The daily closing was at USD 81.21 per barrel, forming a candlestick pattern with a slightly longer lower shadow than the upper shadow, indicating continued pressure on crude oil prices. 

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 84.5-85.0. 
• Key support levels to monitor in the short term are around 81.0-80.6. 

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