US President Donald Trump said that the Middle East war might be coming to an end. As a result, the US dollar weakened and the price of gold stabilized.
Any sign that the US government might be willing to end the conflict could relieve the pressure on gold prices that has been building in recent days. With Iran’s attack on energy infrastructure in the Persian Gulf, the Strait of Hormuz has effectively been closed to shipping. Since the outbreak of the war, oil prices have soared, which in turn has raised concerns about inflation and reduced the possibility of the Federal Reserve cutting interest rates.
Daniel Ghali, senior commodity strategist at TD Securities, noted in a report that gold holdings are facing challenges as the market has ruled out the possibility of interest rate cuts. He said there are signs that gold dealers have been “buying on dips” in the over-the-counter spot market, but “the volume is limited and the scale remains normal.”
Rising borrowing costs are usually bad for gold, as it does not pay interest. As the war continues, global stock markets have slumped, and gold, as a safe-haven asset, has also become a source of liquidity.
Despite the sharp fluctuations in gold trading and the halt in its upward momentum, the price has still risen by nearly one fifth this year. Trump’s disruption of global trade and geopolitics, as well as his threats to the independence of the Federal Reserve, have largely supported the prices of safe-haven assets.
Technical analysis:
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Gold: The blue zone we alerted yesterday through the plugin became a key area for a pullback confirmation after the price touched 5128. After withstanding continuous tests at the opening of the European and North American sessions, the price rose all the way to the 5170 level. For today, continue to pay attention to the pullback buy signal that occurs when the price breaks through the 5180/5200 zone. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
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Nasdaq: Yesterday, our plugin alerted us to place a buy stop order directly after the price broke through the blue zone. Currently, this strategy has performed exceptionally well, achieving a profit-to-loss ratio of nearly 10:1. For today, we suggest locking in most of the profits and then waiting for a pullback to confirm the demand zone around 24,700 before considering a second rebound attempt. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: Yesterday, our plugin clearly suggested to stand by. The price has dropped sharply, falling from around 120 to below 85. Due to the excessive volatility, we recommend observing for another day or at least waiting for a reversal in the price trend before attempting a long position signal. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
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