Gold prices experienced a volatile session on Tuesday, August 19, as the benchmark 10-year Treasury yield settled at 4.708%, while the policy-sensitive 2-year yield closed at 4.181%. Spot gold traded lower throughout the day, with losses accelerating after remarks suggesting the Strait of Hormuz remained open and operational, ultimately closing down 1.86% at $4,334.57 per ounce. Silver followed suit, falling 3.72% to settle at $63.34 per ounce.
In the energy sector, reports from British maritime authorities regarding projectile attacks on vessels in the Strait of Hormuz kept supply disruption and shipping risk concerns at the forefront, driving oil prices higher. WTI crude gained 0.3% to close at $84.34 per barrel, while Brent crude advanced 0.26% to settle at $91.32 per barrel.
Turning to the technical picture for gold, the market opened at $4,416.60 per ounce and initially pushed higher, reaching a daily peak of $4,436.40 before succumbing to resistance from the upper boundary of the descending channel. The decline carried prices to a session low of $4,328.80, with the metal eventually closing at $4,334. The daily candlestick formed a substantial bearish candle with a notable upper shadow, raising questions about whether gold will face continued downward pressure.
Assessing the broader outlook, gold remains confined within a consolidation band following its recent advance, with key support levels holding firm. The short-term bias points to pressure within this range, suggesting a strategy of selling into strength near resistance and buying on dips toward support. Key resistance is identified at $4,370-$4,437, while support rests at $4,320-$4,300.
For crude oil, WTI opened at $84.80 per barrel, briefly retraced to the daily low of $84.44, then rallied to a session high of $85.72 before pulling back in US trading to revisit the $84.44 level. Prices ultimately closed at $85.13, forming a candlestick with a longer upper shadow than lower shadow, indicating ongoing upward momentum within a consolidation phase.
The overall assessment for oil points to a market stabilizing and trending higher, with potential for a breakout. The recommended approach favors buying on pullbacks as the primary strategy, with short positions reserved for quick trades. Resistance is seen at $86.50-$87.80, while support lies at $84.30-$83.30.
In equity index futures, the Nasdaq opened at 29,984.07, initially advanced to 30,030.18, then fell sharply in a strong downtrend to a daily low of 29,417.44 before stabilizing. The index closed at 29,462.05, forming a bearish candle with a longer upper shadow, suggesting further downside pressure may follow in the coming sessions.
Evaluating the Nasdaq's position, the sharp reversal from highs could signal either a trend shift or a pullback seeking support. The tactical approach for today leans toward selling on strength before considering long positions, with resistance at 29,700-29,920 and support at 29,300-29,120.
Comments