Gold At 1986 Again on US Dollar Weakness, Possible Interest Rate Hike Halt

market news summary

Tesla announced its quarterly results for the second quarter of 2023, reporting revenues of approximately $25.93 billion compared to the expected revenues of around $24.47 billion.

European stocks closed higher on the previous Wednesday, supported by gains in British stocks after inflation in the United Kingdom slowed faster than expected. This bolstered hopes that interest rate hikes had peaked and led to an increase in the shares of real estate development companies.

The European STOXX 600 index rose 0.3% at the closing, continuing its gains for the second consecutive session. The FTSE 100 index in London climbed 1.8% as the British pound declined following the inflation data release, leading to a 4.3% increase in the broader real estate index.

Dollar Index (USDX)

The International Monetary Fund (IMF) said on Wednesday, July 19, that emerging market economies endured the impact of the U.S. dollar’s surge in 2022 to its highest level in two decades. They were affected by capital outflows, rising import prices, and tighter financial conditions.

The IMF indicated that for every 10% increase in the value of the U.S. dollar due to global financial market forces, the Gross Domestic Product (GDP) of emerging market economies would decline by 1.9% after one year. This trend is expected to continue for two and a half years.

As of today, the dollar index is trading near levels of $99.80.

Pivot point: 99.90

Resistance level	Support level
100.25	99.60
100.55	99.30
100.90	99.00

Spot Gold (XAUUSD)

Gold prices rose today, Thursday, to their highest level in nine weeks, thanks to the weakness of the U.S. dollar and bets that the Federal Reserve may soon halt its interest rate hike cycle.

In spot trading, gold increased by 0.5% to $1987.18 per ounce, marking its highest level since mid-May. Meanwhile, U.S. gold futures rose by 0.4% to $1988.80.

Pivot Point: 1975

Resistance level	Support level
1981	1970
1986	1964
1992	1959

Dow Jones Index (DJ30ft – US30)

The U.S. stocks closed higher during yesterday’s trading on Wednesday, July 19, as the quarterly earnings season for companies continued. The Dow Jones index recorded its longest winning streak in nearly 4 years.

The Dow Jones index rose by approximately 0.31% to 35,061 points. This marked the eighth consecutive session in which the index increased, representing its longest upward streak since September 2019. The S&P 500 also rose by 0.35% to 4,565 points, while the Nasdaq remained steady at 14,358 points.

Pivot point: 35250

Resistance level	Support level
35395	35085
35555	34945
35700	34785

US Crude (USOUSD)

Oil prices declined at the close of trading yesterday, Wednesday, due to a wave of profit-taking after previous gains driven by a tight supply of U.S. crude and China’s commitment to support its economic growth.

Brent crude futures fell by 17 cents to $79.46 per barrel, while West Texas Intermediate (WTI) crude futures dropped by 40 cents to $75.35 per barrel.

Pivot point: 75.75

Resistance level	Support level
76.45	74.60
77.55	73.85
78.30	72.75

Risk Warning

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