Gold Strengthens, Oil Remains Wild!
Gold prices are still moving strongly today after rising sharply throughout the week. Spot gold reportedly rose around 0.7% to US$4,715.49 per ounce and is likely to record a weekly gain of around 2.2%. The main sentiment comes from the weakening US dollar, easing inflation concerns, and hopes for a US-Iran deal that could ease global energy pressures.
Fundamentally, gold is supported by the sharp decline in oil prices earlier, alleviating concerns about energy inflation and potential interest rate hikes. However, gold is not completely risk-free as market participants are still awaiting US employment data. If employment data is strong, the dollar and yields could rise again, making gold vulnerable to corrections.
Technically, gold is currently in the key US$4,700–US$4,720 area. If it can hold above this area, upside opportunities remain open, heading towards US$4,750 and then US$4,780. However, if gold fails to maintain this area, it could potentially decline to US$4,680–US$4,660, and even further to US$4,630 if selling pressure intensifies.
Meanwhile, oil prices rose again following renewed tensions between the US and Iran. Brent traded around US$101.26 per barrel, while WTI rose to around US$95.66 per barrel. Despite the daily gains, oil still has the potential to decline weekly, having previously been pressured by optimism about a US-Iran peace deal and hopes for the reopening of the Strait of Hormuz.
Fundamentally, oil remains highly dependent on developments in the Strait of Hormuz. If the peace process continues and shipping lanes begin to reopen gradually, oil prices could be under pressure again as supply risks ease. However, if the conflict escalates or there are new attacks in the Gulf, oil prices could surge again due to market concerns about global energy supply disruptions.
Technically, Brent needs to break through the US$102–US$103 area to open up the opportunity to rise to US$105–US$108. If it fails, the price is vulnerable to falling back to US$100, then US$98. For WTI, the upper area to watch is US$96–US$97, while the nearest support is at US$94–US$92. In conclusion, gold remains bullish as long as it remains above US$4,680, while oil remains sideways and volatile as the market awaits certainty regarding the US-Iran and the Strait of Hormuz. (asd)
Source: Newsmaker.id
