Market Analysis of Gold on Monday 02 August 2021
On Monday Asian session, gold was traded at around 1810. Last Friday, the price of gold fell from a high level. Brad from the Fed’s hawkish stance shocked the market, causing US dolar index to rebound strongly. USD managed to get out from a one-month low, and the US Treasury bond is supported by the demand at the end of the month. In July, the dollar and U.S. bond yields fell cumulatively. But the epidemic and the decline in the stock market have supported gold prices. This week, focus on Friday's non-farm payroll data, Australia, and the United Kingdom interest rate decision. From a technical perspective, gold’s daily candle stopped its increase at 1834 as expected, but is still fluctuating short term. The indicators on the daily graph is neutral. H4 graph showed that MA formed Death Cross at a high position, breaking through the middle BOLL, RSI is below 50. Overall prioritise operation on the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1810.
Resistance：1818-1827-1834
Support：1802-1795-1790
Market Analysis of Crude Oil on Monday 02 August 2021
On Monday Asia session, crude oil fell and fluctuated around 72.50. Global crude oil recorded an increase for the fourth consecutive month because demand has grown faster than supply and vaccination is expected to alleviate the impact of the global new variant of Covid virus epidemic. Crude oil production increased year-on-year, but it has not yet recovered to the high of over 12.8 million barrels per day before the pandemic. The global price war, plus the reduced demand caused by the epidemic, will drag down a sharp drop in US oil production in 2020.
From technical perspective, weekly candles for the past two weeks closed bullish. Crude oil has the support from 70 and continued to fluctuate upwards. The daily candle showed a V shaped correction. H4 graph showed that BOLL narrowed and flattened, and the moving averages were intertwined. Further operations are needed. Overall, prioritise the operation within 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 73.30.
Resistance：73.40-74.00-75.00
Support：72.00-71.40-70.30
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