Analysis of gold news: In the U.S. market on Thursday (March 7), spot gold continued its upward trend from the previous days and hit a record high of $2,164 during the day. Previously, Federal Reserve Chairman Powell hinted that interest rates would be cut in 2024 to help gold bulls. “A helping hand”, from a technical perspective, the next target for gold prices is directly at the 2,300 mark, but whether the upward trend can be sustained still needs the support of more data, and Friday’s non-agricultural report is particularly critical. In addition, central banks around the world accelerated their buying, which also supported gold. Gold soared to a record high on Thursday and was on track for a seventh straight session of gains, driven by weak U.S. economic data and Federal Reserve Chairman Jerome Powell’s hint that interest rates could be cut in the coming months if inflation eases. Gold prices extended their record-breaking rally, reaching an all-time high of $2,164.62 earlier in the session, on track for their longest intraday winning streak since at least November 2021. Spot gold prices hit a record high this week on bets that the U.S. could cut interest rates later this year. However, buying by central banks of various countries (especially the Central Bank of China) is also an important driving force for the strength of gold prices. In China’s domestic market, buyer demand for gold continued to be strong, unaffected by high gold prices, as concerns about an unstable economic recovery in China spurred a shift to safe-haven assets. Central banks will continue to buy amid geopolitical uncertainty. China’s economic slowdown will inhibit global economic growth.
Today’s gold strategy: It is recommended to focus on low and long callbacks, supplemented by rebounds from high altitudes. Focus on the 2170 first-line resistance at the top and the 2144 first-line support at the bottom.
Analysis of crude oil news: In the U.S. market on Thursday (March 7), U.S. crude oil prices were trading around $78.8 per barrel. Oil prices rose about 1% on Wednesday as U.S. crude oil inventories increased less than expected, distillates and gasoline Sentiment was also boosted by a sharp drawdown in inventories and a statement from the Federal Reserve chairman that he still expected to cut interest rates this year. In addition, Saudi Arabia unexpectedly raised its official crude oil selling price to Asia. The U.S. Energy Information Administration (EIA) said energy companies’ crude oil inventories rose by 1.4 million barrels in the week to March 1, less than expected, while refined oil and gasoline inventories fell much more than expected. Separately, Powell said in a speech prepared for Congress that the Fed still expects to lower its benchmark interest rate later this year, although policymakers still need to have “greater confidence” that inflation will continue to fall. A rate cut “much depends on the path of the economy. Our focus is on full employment and price stability, as well as incoming data that will impact the outlook, those are what we’ll be watching,” Powell said, before lowering the policy rate. “Want to see more data confirming that inflation is sustainably falling back towards 2% and giving us more confidence in that,” the dollar fell to one-month lows against a basket of other currencies after Powell’s speech. A weaker dollar could make use of Buyers of other currencies purchase cheaper oil, thereby stimulating demand for oil.
Today’s crude oil strategy: It is recommended to focus on rebounding high, supplemented by callbacks low and long. Focus on the 80.2 first-line resistance at the top and the 77.4 first-line support at the bottom.
Caution is required in operation and suggestions are provided for reference.
