Market Analysis of Gold on Monday 21 June 2021
On Monday's Asian session, gold rose slightly and was traded at around 1775. Gold prices fell sharply last week, as the Fed expected an increase in interest rate at 2023, which boosted the US dollar and undermined confidence in the gold market. In addition, the internal views of the Fed are deeply divided, Cascari opposes raising interest rates before the end of 2023, while Brad says that the Fed needs to raise interest rates next year. However, the new type of covid variant that spreads in the UK could bring certain hedging needs to the gold market. From a technical perspective, gold's weekly line is heavily bearish with no upper shadow, the daily line is bearish for the sixth day in a row, suggesting a more pronounced bearish situation. In the H4 chart, the candle shows bearish signs, the moving averages forms Death Cross, and the MACD shows increase in bearish sentiment. Overall, prioritize selling at high prices in the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1780
Resistance：1780-1788-1798
Support：1768-1760-1750
Market Analysis of Crude Oil on Monday 21 June 2021
On Monday Asian session, the price of crude oil hovered at around 71.70. Crude oil reversed from its downward trend and rose last Friday. The possibility of Iran’s lifting of sanctions is reduced, suppressing supply pressure, and the continued decline in inventories will further boost the optimistic outlook of demand. OPEC predicts that the produce of US shale oil this year will be slow, and this provide the upward momentum for oil prices. However, the Fed's strong turn to hawkish stance helped the US dollar strengthen, and the spread of delta variants restricted oil price increases. From a technical point of view, the weekly candle of crude oil forms 4 consecutive bullish candle. Daily candle shows correction which confirms the upwards trend. H4 graph’s upward structure remains unchanged, BOLL maintained the upwards channel and the candle forms a double bottom. Overall prioritise Buy on low on fluctuation zone. The deciding point whether to buy or sell is near 70.90.
Resistance：72.00-72.80-73.50
Support：70.90-70.00-68.50
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