Gold Market Update – On May 20, the benchmark 10-year U.S. Treasury yield closed at 4.677%, while the more policy-sensitive 2-year yield settled at 4.131%. Spot gold fell below the $4,500 threshold, dropping over $100 intraday to close 1.84% lower at $4,482.05 per ounce. Spot silver ended the session down 5.13% at $73.7 per ounce. WTI crude oil closed 1.29% higher at $107.65 per barrel, and Brent crude gained 1.53% to settle at $110.99 per barrel.
Latest Gold Price Action – The gold market opened yesterday at $4,568.5 per ounce. After an initial rise to $4,590, prices faced strong selling pressure and retreated. The decline accelerated during the U.S. session after breaking below the previous day's low, with the daily low reaching $4,462.4 per ounce. The market then consolidated, closing at $4,482. The daily candlestick formed a large bearish candle with a slightly longer upper shadow. Following this pattern, the bearish engulfing formation suggests a high probability of continued downward movement. In summary, gold is operating within a descending channel, indicating a likely extension of the decline. Today's trading strategy prioritizes selling on rallies, with buying on dips as a secondary approach. Resistance levels to watch are $4,517-$4,560, while support is seen at $4,460-$4,400.
Latest Crude Oil Price Action – U.S. crude oil opened lower yesterday at $105.83 per barrel. After a minor dip to $105.72, it experienced strong upward momentum, reaching an intraday high of $108.51 before consolidating. The session closed at $107.68, forming a medium-sized bullish candle with a very long upper shadow. This closing pattern indicates that crude oil remains in a prevailing bullish trend. In summary, with oil in a bullish phase, there is potential for further upside. The primary strategy for today involves buying on pullbacks, with selling on rallies as a secondary tactic. Resistance is anticipated between $105.5 and $106.5, with support levels at $102.5-$101.0.
Latest Nasdaq Index Action – The Nasdaq index opened yesterday at 29,014.37 points. Following a minor rally to 29,090.47, it faced significant selling pressure, dropping to a daily low of 28,561.33. A late-session recovery led to a close at 28,791.37, forming a medium-sized bearish candle with a very long lower shadow. This pattern suggests the index is undergoing a corrective phase following its recent bullish run, awaiting stabilization for a potential rebound. In summary, after a series of new highs, the Nasdaq is experiencing corrective pressure. Once this adjustment concludes, there is potential for renewed upward movement. Today's strategy involves one attempt to sell on a rally, with the primary focus being on buying on dips. Resistance is observed at 29,090-29,350, while support lies at 28,550-28,400.
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