Analysis of gold news: The price of gold suffered a further decline on Friday (March 22), falling to around US$2,160, with an intraday drop of more than US$20. Nonetheless, gold is still up 0.5% so far this week. This is thanks to the Federal Reserve keeping its forecast for a rate cut in 2024 unchanged. This week, the Federal Reserve kept its funds rate at a range of 5.25%-5.5% and stuck to its expectations for three rate cuts before the end of the year. However, the Fed also stated that it would not start raising interest rates until it has greater confidence that inflation will continue to fall to 2%. An upcoming interest rate cut would typically support gold prices and, once implemented, would provide a floor for gold prices. At this point, gold appears to be in an extremely overbought condition, which may require a modest cooling of the recent rally. Further downside could make the $2,157 level an immediate support that needs to be held.
Today’s gold strategy: It is recommended to focus on low and long callbacks, supplemented by rebounds from high altitudes. Focus on the 2190 first-line resistance at the top and the 2160 first-line support at the bottom.
Crude oil news analysis: On Friday (March 22), WTI crude oil prices had a U-shaped trend throughout the day, with mixed gains and losses, and has now resumed its upward trend. Oil prices rose more than 4% last week due to strong demand and increasingly tight supply, and prices are currently flat this week. Crude oil prices this week have been affected by the prospect of a ceasefire in the Middle East and a stronger dollar, which typically weakens demand. Profit-taking after last week’s gains also kept prices in check. On the other hand, there are signs that global oil inventories are falling more than usual, which could deepen concerns about supply adequacy. Onshore inventories of crude oil and fuel fell by 12 million barrels in the first half of this month, data from consultancy FGE showed. This is down significantly from the seasonal average of about 6 million barrels between 2015 and 2019.
Crude oil strategy today: It is recommended to focus on rebounding high, supplemented by callbacks low and long. Focus on the first-line resistance of 79.5 at the top and the first-line support of 82.4 at the bottom.
Caution is required in operation and suggestions are provided for reference.
