Analysis of gold news: Before the close of last Friday (May 31), the U.S. dollar index rebounded slightly at 104.62, and gold unexpectedly plummeted by nearly $40. Falling below the key level indicates further weakness. Despite the slight recovery that followed, bulls are still not in control. Overall U.S. personal consumption expenditures (PCE) in April were in line with expectations, but core PCE was lower than expected, and the U.S. PMI was significantly lower than the forecast of 41, exacerbating the possibility of the Federal Reserve cutting interest rates in September. For now, traders can ignore concerns about recent “hawkish” interest rate hike signals from Fed officials. The dollar has depreciated significantly and deflation is back on track. Markets can now almost completely ignore recent comments from some Fed officials that a rate hike may be needed first. This week is expected to return to a more normal rhythm of economic releases. On Monday, the market will release the S&P Global Manufacturing PMI and the May ISM Manufacturing PMI. Then on Wednesday, the Bank of Canada will announce its interest rate decision, with economists expecting a quarter-percentage point cut, and shortly thereafter, the market will release the May ISM Services PMI. The European Central Bank’s interest rate decision will be announced on Thursday morning, and the market has priced in a 25 basis point cut in the benchmark interest rate and expectations for weekly unemployment benefit applications. On Friday morning, the market will await the release of the May non-farm payrolls report.
Today’s gold strategy: It is recommended to focus on low and long callbacks, supplemented by rebounds from high altitudes. Focus on the 2345 first-line resistance at the top and the 2315 first-line support at the bottom.
Analysis of crude oil news: In the U.S. market last Friday (May 31), international oil prices fell back after rising, with U.S. crude oil trading at $77.15 per barrel. In the past week, the crude oil market has experienced a series of fluctuations, with investors’ eyes fixed on OPEC’s decision to cut production and the ups and downs of U.S. economic data. Investors are awaiting an OPEC meeting on Sunday that will decide the future of the producer alliance’s production cuts. On Friday, WTI crude oil futures closed down $0.92/barrel, or 1.18%, to $76.99/barrel, while Brent crude oil futures fell $0.24/barrel, or 0.3%, to $81.62/barrel. This week, Brent crude oil prices fell 0.6%, WTI crude oil prices fell 1%, WTI fell 4.8% in May, and Brent fell 7.2%. OPEC is widely expected to continue its production cuts, an expectation that dominated the jitters ahead of the weekend. There is currently no interest in adding more oil to the market, however OPEC’s final decision has yet to be announced, and news that Saudi Arabia has invited ministers to attend the June meeting in person adds to uncertainty. Investors are awaiting an OPEC meeting on Sunday that will decide the future of the producer alliance’s production cuts. The crude oil market experienced volatility this week caused by OPEC’s decision to cut production and U.S. economic data. Although OPEC is widely expected to continue cutting production, the final outcome remains unresolved. At the same time, the pace of U.S. economic recovery and uncertainty about demand have also put pressure on oil prices. Analyst opinions and technical analysis provide us with an in-depth understanding of market dynamics. With the release of more key data this week, volatility and trading opportunities in the crude oil market are expected to increase further.
Today’s crude oil strategy: It is recommended to focus on rebounding from high altitudes, supplemented by low and long corrections. Focus on the first-line resistance of 78.8 at the top and the first-line support of 75..8 at the bottom.
Operations need to be done with caution and are recommended for reference only.
