Market Analysis of Gold on Thursday 21 July 2021
In Thursday's Asian session, gold prices hovered around the 1800 figure as US Treasury yields rose and the stock market continued to rebound, leading to weak demand for gold as a safe-haven asset. The yield on the 10-year US Treasury bond continued to strengthen to above 1.2% reducing demand for safe-haven assets and weakens gold's appeal. Investors are focused on the tightening monetary policy and the possibility that inflation rate will increase. Currently the gold market is in a sideways condition.
From a technical point of view, gold's daily candle has yet to break a major resistance level and has tested the support level near 1800 many times. The 4 hours chart shows gold strengthened then suddenly dropped and formed a double bottom around 1794. Moving averages form Death Cross while other indicators are relatively bearish. Overall, prioritize selling at high prices within the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1794
Resistance：1807-1814-1825
Support：1794-1785-1770
Market Analysis of Oil on Thursday 21 July 2021
Oil price rose by more than 4% on Wednesday. On Thursday Asia session, crude oil fluctuated around 70.00. The EIA report shows that as of the week of July 16, US crude oil inventories unexpectedly increased by 2.107 million barrels, the first increase since May; however, finished products, gasoline, and refined oil inventories have all decreased. Although the US crude oil inventories unexpectedly increased last week, the rise in US stocks and the decline in EIA fuel oil supply are good for oil prices.
From technical point of view, daily candles closed by bullish, forming a bullish Morning Star pattern with the previous candle. If this pattern appear at the bottom position, then the trend can be more certain. H4 graph showed a rebound and is currently still under pressure at the key resistance level of 70.50. The indicators show mixed signals between bullish and bearish candles. Overall, priorities in-day-trading at the fluctuation zone. The chart below is showing the key point and the estimated trend, the deciding point whether to buy or sell is near 70.50.
Resistance：70.50-71.20-72.00
Support：69.20-68.50-67.50
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