Gold Market Divergence Emerges Amid Rally; Expert Outlines Closing Trading Plan

Deep News07-31 16:40

Market data from Thursday, July 31, showed the benchmark 10-year US Treasury yield closing at 4.677%, while the policy-sensitive 2-year yield settled at 4.256%. Supported by a weaker US dollar, spot gold closed above the $4,100 mark for the first time in a week, ultimately finishing 0.92% higher at $4,103.84 per ounce. Spot silver regained the $59 level, closing 2.35% higher at $59.01 per ounce.

International crude oil traded in a sideways consolidation pattern, with Pakistan indicating that the US and Iran are still negotiating over the Strait of Hormuz issue. WTI crude opened lower and fluctuated within a range, closing 1.13% lower at $82.65 per barrel. Brent crude briefly touched the $89 mark before retreating, ending the session 1.18% lower at $86.87 per barrel.

Gold's Latest Market Trend

Gold opened at $4,067.5 per ounce on Thursday. The price initially rose to $4,100.3 per ounce before experiencing a sharp decline to a daily low of $4,027.8 per ounce. A subsequent rally pushed prices to a session high of $4,120.4 per ounce during US trading hours. After consolidation, the daily candlestick closed as a medium bullish candle with a long lower wick at $4,103.2 per ounce. This closing pattern indicates that gold remains within a sideways consolidation range.

In summary, gold has been trading in a low-range consolidation pattern without a breakout. Today's focus will be on whether this range can be broken. The trading strategy should consider selling into strength and buying on dips. Key resistance levels are $4,120 to $4,167 per ounce, while support is found between $4,050 and $4,000 per ounce.

Crude Oil's Latest Market Trend

US crude oil opened at $84.97 per barrel on Thursday. The price initially fell to $83.48 per barrel before staging a sharp rally to a daily high of $86.25 per barrel. Prices then experienced a second decline to a session low of $83.22 per barrel before consolidating. The daily candlestick closed at $84.17 per barrel as a spinning top formation with a slightly longer upper wick. This pattern suggests there is a probability of renewed downward pressure on oil prices.

In summary, crude oil prices have shown a decline followed by a rally this week. After touching the $86.0 level, resistance emerged. If prices cannot sustain a breakout above this level today, bearish momentum is likely to continue. The strategy should prioritize selling into rallies with buying on dips as a secondary approach. Key resistance lies at $86.0 to $88.0 per barrel, while support is seen at $81.4 to $80.0 per barrel.

NASDAQ Index's Latest Market Trend

The NASDAQ index opened at 27,082.89 on Thursday. After a slight pullback to 27,078.69, prices rallied strongly to a session high of 28,258.58. The index consolidated and closed at 28,185.9, forming a large bullish candlestick with a long upper wick. This pattern, resembling a "dragon pulling up a tree," indicates a high probability of further upside.

In summary, the NASDAQ's bullish trend has experienced a powerful rally, altering the short-term trajectory. However, resistance levels above remain noteworthy. Today's strategy should prioritize buying on pullbacks with selling into strength as a secondary approach. Key resistance levels are 28,600 to 28,790, while support is seen at 28,100 to 27,750.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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