Spot Gold:
June 10th, Market Drivers: In early Asian trading on Wednesday, spot gold experienced a significant decline, with the price recently falling below the $4,200 per ounce mark. According to reports, gold extended its losses following new U.S. airstrikes on Iran in retaliation for a downed military helicopter, a development that could undermine efforts to quell the conflict unsettling global markets. The repricing of Federal Reserve rate hike expectations has provided solid support for the U.S. dollar, a support expected to be far more enduring than suggested by the recent heavy sell-off in precious metals.
Technical Perspective: Gold extended its losses in recent intraday trading, reaching the $4,200 support level, which represents our final downside target under the current bearish trend. This decline reflects persistent selling pressure and seller dominance over price action. The negative technical outlook remains unchanged as gold continues to trade below the 50-day Exponential Moving Average (EMA), a dynamic resistance level reinforcing the short-term downtrend. The Relative Strength Index also continues to generate negative signals, indicating active selling pressure and reducing the likelihood of a strong near-term rebound. Key levels to watch tonight are resistance around $4,200/4,220 and support around $4,110/4,098.
Evening Trading Recommendations for Gold:
Recommendation: Consider buying on a pullback to $4,112/4,100 and selling on a rebound to $4,195/4,210, with a stop-loss of 10 points each and a target of 20/50 points.
[GOLD Pivot: $4,153/oz!]
WTI Crude Oil:
Market Drivers: On Wednesday, June 10th, during Asian trading, U.S. crude oil prices maintained a range-bound pattern. Media reports indicate renewed military action by U.S. forces against Iran has worsened tensions in the Middle East, providing renewed buying support for oil prices. Previously, announcements of a pause in mutual attacks between Iran and Israel had cooled geopolitical risk sentiment, leading to a significant correction in international oil prices on Tuesday, which touched their lowest level in seven weeks. With the Middle East conflict showing volatility, subsequent focus will be on the resumption of traffic through the Strait of Hormuz. Upside potential for the oil market is limited, and cautious trading is advised.
Technical Perspective: From a technical standpoint, on the daily chart, bullish momentum has somewhat weakened. Yesterday, international oil prices briefly broke below key support at the lower end of the range, though the overall upward structure has not been completely broken. Observing the 4-hour cycle, a technical correction appeared following the rapid price decline, with short-term moving averages gradually flattening, indicating the market is entering a phase of renewed contest between bulls and bears. If the Middle East situation escalates further, or if U.S. inventories continue to decline, supply concerns could once again push prices higher. Conversely, if ceasefire negotiations show positive progress and Strait of Hormuz shipping remains stable, the market's risk premium may further recede, thereby capping the upside for oil prices. Key levels to watch tonight are resistance around $89.8/91.5 and support around $88.5/86.0.
Evening Trading Recommendations for Crude Oil:
Personal Recommendation: Consider buying on a pullback to $87.5/86.0 and selling on a rebound to $89.8/91.5, with a stop-loss of 1.0 point each and a target of 3.0 points per barrel.
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