Market Analysis of Gold on Thursday, June 17, 2021
On Thursday Asian market, gold rebounded slightly, trading at around US$1,822 per ounce. The price of gold plummeted by 2.56% on Wednesday, mainly due to the Fed's preparation to raise interest rates early. It implies that there will be two interest rate hikes before the end of 2023. At the March meeting, the Fed did not expect to raise interest rates until the end of 2023. The hawkish stance of the United States Union’s exceeds people’s expectations which caused the US dollar to soar by nearly 1%, and the 10-year US Treasury yields soared by more than 5%. Gold bulls panic, but concerns about inflation are still expected to provide some support to gold. From a technical point of view, the daily candle of gold weakened and breakthrough the short-term key support level of 1845 and continued to weaken. H4 graph shows a clear trend and RSI shows bearish signs. H1 graph shows a weakening ladder. Overall prioritise Sell on High. The deciding point whether to buy or sell is near 1800.
Resistance: 1828-1836-1845
Support: 1815-1809-1800
Market Analysis of Crude oil on Thursday, June 17, 2021
Crude oil fell slightly in the Asia session on Thursday, trading at around $71.60. Oil prices soared and fell more than 1% on Wednesday, mainly due to the strengthening of the USD, and concernes that the US Federal Reserve may raise interest rates earlier than previously expected. However, the latest data released by the U.S. Energy Information Administration (EIA) shows that U.S. crude oil inventories have fallen for the fourth consecutive week, the largest drop since April. Iran's nuclear negotiations fell into tension, which also becomes support to oil prices. From a technical point of view, crude oil closed slightly bearish after four consecutive bull candles, but this does not change the upward structure of the market. H4 graph performance remained strong, and oil remained stable near the middle Bollinger band. RSI shows a little pressure. Overall prioritise operation Buy on low on the fluctuation zone. The deciding point whether to buy or sell is near 70.50.
Resistance：72.20-72.80-73.50
Support：71.00-70.50-68.50
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