KEY HIGHLIGHTS
- Gold Faces Pressure Amid Stronger USD, Geopolitical Risks.
- Silver Rallies Above $30, Supported By Haven Demand.
- Oil Prices Dip On Rising U.S. Inventories.
- Natural Gas Awaits EIA Report For Direction.
INTRODUCTION
The precious metals and energy markets are navigating key developments this week. Gold faces modest pressure due to a stronger US Dollar (USD), while silver rallies above critical levels on safe-haven demand. Meanwhile, crude oil prices are constrained by rising US fuel inventories, and natural gas traders await the Energy Information Administration (EIA) report for market direction. This article focuses on the latest market trends and technical insights to provide traders with actionable strategies.
Gold Under Pressure Amid USD Strength
Gold prices (XAU/USD) are experiencing intraday pressure during Thursday’s Asian session, struggling to extend their recent gains. A stronger USD, bolstered by expectations of slower Federal Reserve (Fed) rate cuts, has dampened demand for the non-yielding yellow metal.
However, geopolitical risks and trade war concerns continue to provide support for gold as a safe-haven asset. A modest pullback in US Treasury yields has limited further USD gains, capping the downside for gold prices. With the US Nonfarm Payrolls (NFP) report looming on Friday, investors are adopting a cautious approach. Key speeches from Federal Open Market Committee (FOMC) members later today could provide short-term trading cues.
Technical Overview
- Moving Averages (Exponential):
- MA 10: 2644.51 | Positive Crossover | Bullish
- MA 20: 2640.69 | Positive Crossover | Bullish
- MA 50: 2639.30 | Positive Crossover | Bullish
- Relative Strength Index (RSI): 55.62 | Buy Zone | Bullish
- Stochastic Oscillator: 87.69 | Buy Zone | Neutral
Resistance Levels:
- R1: 2699.06
- R2: 2732.79
Support Levels:
- S1: 2589.87
- S2: 2556.14
Trade Suggestion:
- Limit Buy: 2657.26
- Take Profit: 2693.66
- Stop Loss: 2639.46
Silver Rallies Above $30.00 on Safe-Haven Demand
Silver (XAG/USD) continues its upward momentum, trading above $30.00 per troy ounce during Thursday’s Asian session. This marks the sixth consecutive day of gains and a three-week high for silver prices.
The metal benefits from safe-haven demand driven by concerns over inflation and rising geopolitical tensions. Strong growth prospects for 2024 have boosted industrial demand for silver, particularly in solar technology, electric vehicles (EVs), and 5G networks. However, long-term US bond yields may limit further upside potential.