Gold Analysis:
Recently, officials from the Federal Reserve have managed expectations regarding a rate cut, stating that the current inflation levels in the U.S. do not warrant such a move and that patience is necessary. Additionally, the major Eastern country paused its gold reserve purchases in May, making a rapid and massive price surge in gold and silver less likely as seen earlier this year. Prices might remain volatile in the short term.
Sixteen Nobel Prize-winning economists recently signed a joint letter warning that a re-election of former President Trump could bring economic risks, including a resurgence of inflation, which could further delay Federal Reserve rate cuts, adversely affecting gold prices.
Technical Analysis: On the daily chart, the previous trading day continued its downward trend, closing with a bearish candlestick, indicating short-term weakness in gold prices. From an indicator perspective, the market is moving below the 20-day moving average, signaling a potential further decline in gold prices. Watch for resistance at the $2318 level and support at the $2277 level throughout the day.
Crude Oil Analysis:
On Wednesday (June 26), the EIA crude oil inventory data for the week ending June 21 was released, showing an increase of 3.591 million barrels, compared to market expectations of a decrease of 2.85 million barrels and the previous week's decrease of 2.547 million barrels. This theoretically suggests downward pressure on oil prices, so investors should be cautious of further declines.
The American Automobile Association (AAA) projects that nearly 71 million Americans will travel during the early July Independence Day holiday, setting a new record. Expectations of increased U.S. oil consumption may help offset concerns about weak oil demand in other regions. With supply stabilizing and geopolitical risks slightly easing, an improvement in demand will undoubtedly support oil prices.
Technical Analysis: On the daily chart, recent trading sessions have shown the market maintaining relatively high levels with consolidation adjustments, likely to continue in the short term. Indicators show the market is operating above the 20-day moving average, with bulls still in control. Watch for resistance at the $82 level and support at the $80 level throughout the day.
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