Friday Market Overview
Gold prices slipped Thursday following a strong rally earlier in the week. After briefly touching a two-week high of $3,345, gold reversed sharply and settled near $3,294. Oil prices also dropped, hitting near two-week lows, as rising US inventories and fears of weakened demand from trade tensions weighed on the market. Meanwhile, OPEC+ discussions about a potential production hike further pressured prices.
Gold Market Recap
Gold traded in a narrow range Thursday, following gains in the first three sessions of the week. Prices briefly surged to $3,345, the highest in two weeks, before sharply reversing and closing near $3,294.
The pullback was primarily driven by a 0.3% rebound in the US Dollar Index, which climbed back above the key 100 level, closing near 99.94. Although modest, the rebound had an outsized effect on gold due to prior weakness in the dollar, which had dropped for three straight sessions to a two-week low.
“The dollar’s bounce raised gold costs for non-dollar buyers, and these currency effects tend to be amplified during Asian and European trading hours,” said Jim Wycoff, senior analyst at Kitco Metals.
Gold – Technical Outlook
Gold initially surged in the Asian session, briefly breaking above $3,345, before selling pressure kicked in. The European session saw a continued drop, breaking below $3,300 and touching $3,280 before stabilizing. A rebound attempt during the US session faced resistance around $3,315, leading to another pullback. The daily chart closed with a bearish candle, reflecting the high-to-low volatility.
Gold – Today’s Strategy
Wait for price confirmation at key levels before entering new positions.
- Resistance to watch: $3,320–$3,325
- Support to watch: $3,280
Crude Oil Market Recap
Oil prices hit two-week lows on Thursday as US crude stockpiles rose again and trade tensions cast doubt on demand outlook. Ongoing discussions within OPEC+ about a potential major output hike also added bearish pressure.
WTI crude fell 0.6%, settling just above $61 per barrel, while Brent crude dropped below the $65 mark.
According to reports, if OPEC+ approves a 411,000 barrels/day increase at its June 1 meeting, it would mark the third straight month of supply hikes—triple the originally planned pace.
“The most likely outcome is another 411,000 bpd increase starting in July, mainly led by Saudi Arabia,” said Helima Croft, Head of Global Commodity Strategy at RBC Capital Markets.
Crude Oil – Technical Outlook
Oil dropped sharply in the Asian session, falling below $61 and bottoming out near $60.30 before rebounding. In the European and US sessions, prices retested lows around $60.20, then bounced modestly into the close. The daily chart formed a small-bodied candle, signaling indecision after heavy pressure.
Crude Oil – Today’s Strategy
Be patient and wait for strong setups near support or resistance levels.
- Resistance to watch: $62.5–$62.7
- Support to watch: $60.0
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Disclaimer
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