Gold Market Overview –
On Friday, June 7th, robust U.S. non-farm payroll data for May fueled expectations for a Federal Reserve interest rate hike within the year. The benchmark 10-year U.S. Treasury yield closed at 4.522%, while the policy-sensitive 2-year yield settled at 4.147%. Spot gold faced pressure from the rising U.S. dollar and bond yields, plummeting sharply before the U.S. session to a daily low of $4,311.78, a drop of over $150 from its peak. It ultimately closed down 3.3% at $4,327.77 per ounce, erasing all its year-to-date gains. Spot silver fell below the $70 mark, closing down 8.11% at $67.88 per ounce. Oil prices declined on Friday as traders grew increasingly confident that a renewed conflict between the U.S. and Iran was unlikely. WTI crude oil fluctuated during the Asian session, experienced heightened volatility in the European session, and continued to decline in the U.S. session, closing down 2.92% at $91.73 per barrel. Brent crude closed down 2.48% at $92.03 per barrel.
Latest Gold Price Action
The gold market opened last week at $4,540.3 per ounce, saw a minor rally to $4,546.7, then entered a period of fluctuating decline. Following the strong non-farm payrolls report on Friday, prices fell sharply, reaching a weekly low of $4,310.9 before consolidating. The week concluded with a settlement at $4,327.5, forming a bearish candlestick with a slightly long lower shadow on the weekly chart. This closing pattern indicates continued downward pressure on gold. In summary, gold is in a consolidating downtrend. For today's trading, the primary strategy is to look for selling opportunities on rebounds, with buying on dips as a secondary approach. Key resistance levels to watch are $4,355-$4,385, while support is seen at $4,290-$4,250.
Latest Crude Oil Price Action
U.S. crude oil opened last week at $90.96 per barrel, dipped slightly to a weekly low of $90.6, then staged a strong rally to a weekly high of $98.75. Prices retreated sharply towards the week's end, closing at $91.66. This formed a shooting star candlestick with an extremely long upper shadow on the weekly chart, suggesting oil is likely to continue trading within a range. In summary, crude oil is in a wide-ranging consolidation. Today's market opened higher with a gap, but without a sustained bearish follow-through, further consolidation is probable. The trading strategy for today is to sell on rallies and buy on dips. Resistance is anticipated around $95.3-$97.0, with support near $92.0-$91.0.
Latest Nasdaq Index Price Action
The Nasdaq market opened last week at 30,350.43, initially rallied to 30,755.42, then fluctuated lower. Following the non-farm payrolls data on Friday, the index fell sharply to a weekly low of 28,713.13 before consolidating, closing the week at 28,774.44. This formed a bearish candlestick with a very long upper shadow on the weekly chart, indicating a high probability of range-bound trading ahead. In summary, the breakdown from recent highs in gold has impacted the prior strength of the bullish trend, potentially altering its structure. For today's trading, the strategy is to sell on rallies and buy on dips. Resistance levels to monitor are 29,447-29,800, while support is seen at 28,850-28,700.
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