Analysis of gold news: Before the United States released core personal consumption expenditures price index data (PCE) for February last Thursday (March 28), the precious metal showed a strong trend. Gold’s 8.5% gain in March 2024 marked the metal’s best monthly performance since July 2020, when gold gained 10.8% amid the massive monetary and fiscal stimulus measures amid the pandemic. Spot gold closed at $2,232.73 per ounce, an increase of 1.73%. Spot gold hit an intraday record high of $2,236 and had its best monthly performance in more than three years. Last Thursday, gold prices broke through the $2,200 mark, rising for three consecutive days this week and testing the 2,200 resistance level multiple times. The author believes that the Federal Reserve’s attitude towards interest rate cuts and the persistence of geopolitical risks have provided support to gold. Despite recent high inflation data, the Federal Reserve is still expected to cut interest rates three times in 2024, which is also a reason for the rise in gold prices.
Today’s gold strategy: It is recommended to focus on low and long callbacks, supplemented by rebounds from high altitudes. Focus on the 2272 first-line resistance at the top and the 2242 first-line support at the bottom.
Analysis of crude oil news: Crude oil futures rose sharply during the U.S. trading session last Thursday (March 28) and are currently trading around $83/barrel. The intraday increase was over 1%, with Brent crude oil rising over 1.2%. Oil prices rebounded, driven by U.S. crude and gasoline inventory data. Oil prices have shown resilience despite rising inventories, a surge in crude imports and sluggish gasoline demand. According to a report by the U.S. Energy Information Administration (EIA), inventories were lower than expected compared with forecasts by the American Petroleum Institute (API), indicating a slight shortage in the global oil market. Investors’ attention is focused on the upcoming OPEC meeting. Although no major policy changes are expected before the ministerial meeting in June, adhering to current production quotas is crucial. OPEC’s recent overproduction, as well as challenges faced by Russia and Iraq in achieving production cuts, have raised questions about the group’s ability to maintain a production-cut deal. Ongoing geopolitical risks, particularly ongoing tensions in the Middle East, are exacerbating oil market volatility. The absence of a ceasefire between Israel and Hamas has kept regional tensions high, affecting concerns about global oil supplies. In short, the rally in WTI crude oil futures has stalled over the past few sessions, with prices hovering around the 50.0% Fibonacci level of 81.50. However, a pennant pattern forming in this area could hint at a possible breakout in the coming sessions.
Today’s crude oil strategy: It is recommended to focus on rebounding high, supplemented by callbacks low and long. Focus on the 84.5 first-line resistance at the top and the 81.5 first-line support at the bottom.
Caution is required in operation and suggestions are provided for reference.
