XAUUSD Holds Steady Amidst Contrasting Forces

Zarith Sofea · 08 Feb 11.3K Views

WTI 


Oil prices continued their upward trajectory on Thursday, driven by geopolitical tensions and a weaker dollar. The rejection of a ceasefire offer from Hamas by Israel heightened concerns about potential supply disruptions, providing support to oil markets.

At 0400 GMT, WTI crude futures saw a 0.4% increase, reaching $74.12 per barrel. The market sentiment remains bullish as geopolitical factors contribute to the bullish momentum. Traders should closely monitor developments in the Middle East as they can significantly impact oil prices.

Position: Long

Brent Crude:

Brent crude futures also experienced a 0.4% gain, reaching $79.51 a barrel at 0400 GMT. The geopolitical unrest, coupled with a weaker dollar, has buoyed Brent prices. The continuous rejection of ceasefire offers and the ongoing Gaza conflict are contributing to the uncertainty in the region.

As the geopolitical situation unfolds, traders may find opportunities in Brent crude. However, it's essential to remain vigilant and consider the potential for rapid price movements based on developments in the Middle East.

Position: Long

XAUUSD



XAUUSD prices steadied on Thursday, as conflicting factors influenced the market. On one hand, safe-haven demand rose following Israel's rejection of a ceasefire offer from Hamas and the ongoing Gaza conflict. On the other hand, pushback from U.S. Federal Reserve officials regarding early interest rate cuts acted as a counterforce.

At 0427 GMT, spot gold held firm at $2,033.56 per ounce. U.S. gold futures saw a marginal decline of 0.1%, settling at $2,049.00 per ounce. The market appears to be in a state of equilibrium, with opposing forces shaping gold's direction.

Traders should be cautious and monitor both geopolitical developments and statements from central banks, as they are likely to influence gold prices in the short term.

Position: Neutral

AUDUSD


The Australian Dollar exhibited a recovery on Thursday, reclaiming recent losses amidst a prevailing risk-on sentiment in the market. Despite the U.S. Federal Reserve's commitment to maintaining elevated interest rates until inflation returns to the 2% target, the U.S. Dollar faces challenges.

Trading around 0.6530 on Thursday, the Australian Dollar is slightly below the immediate resistance level of 0.6550. The risk-on sentiment, combined with the challenges faced by the U.S. Dollar, supports the Aussie's recovery.

Traders should closely monitor the market sentiment and any developments related to the U.S. Dollar. A break above the resistance level could provide a bullish signal for the Australian Dollar.

Position: Long


Summary:

WTI : Geopolitical tensions in the Middle East continue to drive oil prices higher. Traders are advised to maintain long positions and closely monitor developments in the region.

Brent Crude: Similar to WTI, Brent crude remains bullish due to geopolitical factors and a weaker dollar. Long positions are favored, but caution is advised given the uncertainty in the Middle East.

XAUUSD: Gold is currently in a state of equilibrium, with conflicting factors influencing its direction. Traders should exercise caution and closely monitor both geopolitical events and central bank statements.

AUDUSD: The Australian Dollar is on a recovery path, supported by a risk-on sentiment. Traders should consider long positions, especially if the currency breaks above the immediate resistance level of 0.6550. Keep an eye on developments related to the U.S. Dollar.


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Paraphrasing text from FXStreet, and Reuters all rights reserved by the original author.

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