Gold Market Update – July 14th saw the benchmark 10-year US Treasury yield close at 4.620%, while the policy-sensitive 2-year yield finished at 4.296%.
Heightened tensions in the Middle East fueled market anxieties about a potential resurgence in inflation and the possibility of the Federal Reserve maintaining a "higher for longer" interest rate stance.
This pressured spot gold into a sustained decline, with a daily drop exceeding $100.
The price briefly broke below the $4,000 per ounce level during the session, ultimately closing down 2.85% at $4,001.98 per ounce.
Spot silver ended the day with a 3.66% loss, settling at $57.66 per ounce.
International oil prices surged dramatically on Monday, gaining nearly 9%.
WTI crude oil initiated its upward move before the US market opened, accelerating its gains during the US trading session to close up 8.93% at $77.80 per barrel.
Brent crude oil finished the day 9.01% higher at $82.78 per barrel.
Latest Gold Market Analysis
Influenced by bearish fundamental factors, the gold market opened lower yesterday at $4,099.1 per ounce.
After a minor rally to $4,103.8, the price experienced a strong, volatile decline.
The session low for the day was reached at $3,985.7 per ounce during US trading, followed by consolidation.
The day concluded with a close at $4,001.6 per ounce, forming a large bearish candlestick with a lower shadow slightly longer than the upper shadow.
This closing pattern suggests a high probability of further downward pressure for gold.
In summary, following its peak and subsequent retreat, gold's bearish momentum continues to expand.
The key focus today is whether the decline will extend to new lows.
The recommended trading strategy prioritizes entering short positions on rebounds, while waiting for clearer signals before considering long positions at lower levels.
Resistance is anticipated in the $4,020-$4,050 range, with support expected between $3,950 and $3,900.
Latest Crude Oil Market Analysis
The US crude oil market opened higher yesterday at $73.39 per barrel.
After a slight advance to $75.14, the price underwent a sharp pullback, finding a daily low at $72.65.
A powerful rally ensued during the US session, pushing the price to a daily high of $78.63 before consolidation set in.
The session closed at $78.02 per barrel, resulting in a large bullish candlestick with a lower shadow slightly longer than the upper shadow.
This closing formation indicates that bullish momentum in crude oil has the potential for further upward testing.
In summary, following a breakout from its consolidation phase, crude oil shows a high likelihood of extending its upward trajectory.
The suggested approach for today is to primarily look for opportunities to enter long positions on pullbacks, with short positions considered only for brief tactical moves.
Resistance is eyed at the $80.6-$81.9 zone, while support levels are seen at $76.7 and $75.0.
Latest Nasdaq Index Analysis
Pressured by weekend fundamentals, the Nasdaq index opened lower yesterday at 29,720.6 points.
A minor gap-filling rally to 29,873.13 was followed by a strong sell-off.
The index reached a daily low of 29,165.12 before consolidating, ultimately closing at 29,206.54 points.
The day formed a large bearish candlestick with a relatively long upper shadow, a pattern that warrants attention for its bearish implications.
In summary, the Nasdaq has been gradually forming a triangular consolidation pattern, which appears to be approaching a potential breakout point in the near term.
The focus today remains on the persistence of the bearish trend.
The trading strategy recommends prioritizing short positions on rebounds, with long positions considered secondary.
Resistance is anticipated between 29,370 and 29,600 points, while support is expected in the 29,000 to 28,600 range.
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