- Crude Oil
WTI dipped by 0.32% today and is currently trading at $66.26.
From a fundamental standpoint, the API’s weekly Crude Oil Stocks report was released today. The actuals were recorded at 680K barrels, versus an expected decline of 2.26 million. This triggered a bearish sentiment among participants.
From a technical stance, WTI continues to trade close to the support at the $64.7-$65.4 price mark, as mentioned yesterday. Furthermore, it is the sixth day where crude oil has been rangebound between the $ 65.40-$67.14 price mark. A break above the $67.14 price mark brings an upside, in contrast, a bearish trend ensues if the $65.4 price level is broken. On the 4H chart, a strong bullish divergence can be observed. When the price was low at $65.18 on June 24th, the RSI was at 25.8. Currently, the price is at $66.26, while the RSI is at 43.62, supporting a bullish bias for the day. Finally, it must be noted that it printed a doji candle 2 days ago; as this doji candle comes after a series of consolidation in a downtrend, a bullish reversal is highly expected.
- Gold
Despite hawkish remarks from Fed Chair Jerome Powell and a robust labour market data, Gold held onto its gains trading at $3,335 an ounce after increasing by 2% in 2 the last sessions, showcasing an evident bullish trend as investors weigh the US budget dynamics following President Donald Trump’s multitrillion-dollar tax bill senate approval. The tax bill, which expected to widen the deficit by $3.3 trillion over the next decade, now awaits voting in the House. If endorsed, it would enhance the appeal of gold as a haven, especially with investors reconsidering their US asset exposure in response to Trump’s trade and economic policies.
Additionally, the dollar just hit 3 years low, which also supports Gold bullish momentum. Meanwhile, investors are monitoring US trade negotiations, where Trump is sticking by his July 9 deadline to raise tariffs. Although it has not been able to capitalize on its two-month up trend, the bigger picture is still gold-friendly.
On the daily chart for spot gold, shows that the price has rebounded from the strong support of the ascending trendline, but still unable to break above the 21-day SMA near $3,350, which acted as a resistance for the last 5 sessions. However, the price remains in strong consolidation, and a break above this level could initiate a strong surge in gold prices to test $3,400 and $3,450 resistance levels. On the flip side, support can be identified near the rising support line of the ascending triangle, which corresponds to $3,275 level.
Gold prices in the UAE are as follows –
24 Carat – AED 402.50
22 Carat – AED 372.50
21 Carat – AED 357.25
18 Carat – AED 306.25
