Gold Surges to Weekly High as Dollar Drops; Oil Slips

2025-05-22 | Commodities , Crude Oil , Daily Analysis , Daily Insight , Dollar , Gold , Oil , Precious Metals

Gold Surges to Weekly High as Dollar Drops; Oil Slips

Thursday Market Overview

Gold extended its winning streak to a third consecutive session on Wednesday, hitting a one-week high of $3,324.76 per ounce before closing at $3,315.14, up 0.78% for the day.
Oil prices, meanwhile, edged lower as rising US crude inventories outweighed reports from CNN suggesting Israel may be preparing to strike Iranian nuclear facilities.

Gold Market Recap

Gold saw strong gains Wednesday, rising for a third straight session and reaching a weekly high of $3,324.76 per ounce. It eventually settled at $3,315.14, posting a 0.78% daily gain.

The rally was driven by a combination of dollar weakness and escalating global geopolitical uncertainty, reinforcing gold’s appeal as a traditional safe-haven asset.

The US Dollar Index dropped 0.6% on Wednesday, falling below the psychological 100 level and touching a two-week low of 99.33. A weaker dollar makes dollar-denominated gold cheaper for holders of other currencies, boosting international demand.

Gold briefly spiked above $3,314 in early trading before pulling back and testing support around $3,285. Prices then rebounded and resumed upward momentum. During the European session, gold broke through $3,314 again, climbing toward $3,320 before facing resistance and consolidating. In the US session, prices dipped once more to retest $3,290, then bounced strongly into the close.

Gold Surges to Weekly High as Dollar Drops; Oil Slips
(Gold Futures, 1-day chart) 

Maintain a buy-on-dip approach aligned with the ongoing bullish trend.

  • Resistance to watch: $3,350
  • Support to watch: $3,290–$3,295

Crude Oil Market Recap

Oil prices declined Wednesday as US crude inventories rose for a second straight week, overshadowing news from CNN that Israel may be preparing to attack Iran’s nuclear facilities.

WTI crude fell 0.7%, closing below $62 per barrel. A government report revealed US crude stockpiles had climbed to their highest levels since July, while gasoline demand also weakened. Ongoing uncertainty surrounding US-Iran nuclear talks has kept oil prices volatile in recent sessions. Any Israeli strike could derail those negotiations and further destabilize the region.

“Either the market believes such a strike would have limited impact on oil, or it doubts the likelihood of it actually happening,” said Bjarne Schieldrop, Chief Commodities Analyst at SEB AB.

Oil surged past $64 in the early Asia session but quickly met resistance and fell back. Prices dropped steadily through the European and US sessions, breaching $63 and touching $62. Overnight, the decline continued, briefly breaking below $62 and approaching $61 into the close — a sign of sustained bearish pressure.

Gold Surges to Weekly High as Dollar Drops; Oil Slips
(Light Crude Oil Futures, 1-day chart) 

Wait patiently for key levels before taking new positions.

  • Resistance to watch: $62.5–$62.7
  • Support to watch: $60.0

Risk Disclosure  
Trading in securities, futures, contracts for difference (CFDs) and other financial products carries high risks due to the rapid and unpredictable fluctuation in the value and prices of these financial instruments. This unpredictability is due to the adverse and unpredictable market movements, geopolitical events, economic data releases and other unforeseen circumstances. You may sustain substantial losses, including losses exceeding your initial investment within a short period of time.  
You are strongly advised to fully understand the nature and inherent risks of trading with the respective financial instrument before you begin to trade or engage in any transactions with us. When you engage in transactions with us, you acknowledge that you are aware of and accept these risks. You should conduct your own research and consult with an independent qualified financial advisor or  professional before making any financial, trading or investment decisions.    

Disclaimer  
The information contained in this blog is for general informational purposes only and should not be considered as financial, investment, legal, tax or any other form of professional advice, recommendation, an offer, or an invitation to buy or sell any financial instruments. The content herein, including but not limited to data, analyses and market commentary, is presented based on internal records and/or publicly available information and may be subject to change or revision at any time without notice and does not consider any specific recipient’s investment objectives or financial situation. Past performance is not an indicator of future performance and D Prime and its affiliates give no assurance that any views, projections or forecasts will materialize. D Prime and its affiliated entities make no representations or warranties about the accuracy or completeness of this information and disclaim any and all liability for any direct, indirect, incidental, consequential, or other losses or damages arising out of or in connection with the use of or reliance on any information contained in this blog. You should conduct your own research and consult with an independent qualified financial advisor or  professional before making any financial, trading or investment decisions.    

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