XAUUSD
XAUUSD prices continued their upward momentum, breaching the $2,350 barrier to reach an all-time high at $2,354 during Asian trading on Monday. Despite a backdrop of easing geopolitical tensions and reduced expectations of a June interest rate cut by the US Federal Reserve, gold's rally persisted. The primary driver behind this surge remains reports suggesting potential robust gold purchases by global central banks.
Technical Analysis: Gold's price action suggests strong bullish sentiment, with the precious metal trading at record highs. The breach of the $2,350 resistance level indicates further bullish momentum, with the next psychological level of $2,400 likely to be targeted. Support is seen around $2,300, followed by the $2,250 level.
Entry Suggestion: Traders may consider long positions on gold, targeting a breakout above $2,354 with a stop-loss below $2,300.
USDJPY
The Japanese yen experienced a reversal from a two-week high against the US dollar on Friday, closing near the lower end of its daily range. The dovish stance from the Bank of Japan (BoJ), indicating a delay in the next rate hike, coupled with a positive risk sentiment, weighed on the safe-haven yen. Selling pressure persisted during Monday's Asian session, exacerbated by softer domestic data revealing a 23rd consecutive month of decline in real wages in Japan.
Technical Analysis: USDJPY remains within a bearish trend, with the pair trading below key resistance levels. The 151.30 zone acts as immediate resistance, followed by 151.00. On the downside, support is seen at Friday's swing low around 150.30.
Entry Suggestion: Short positions on USD/JPY could be considered upon a break below 150.30, targeting the 150.00 handle, with a stop-loss above 151.30.
WTI
Oil prices retreated for the first time in five sessions, with WTI slipping amid news of Israel withdrawing some troops from Gaza. Brent crude declined over 2%, trading near $89 a barrel, after reaching its highest level in over five months. West Texas Intermediate fell below $85, having rallied recently due to escalating geopolitical tensions and supply shocks, raising the possibility of the global benchmark reaching triple figures.
Technical Analysis: WTI crude oil remains within a bullish trend, supported by geopolitical factors and supply concerns. However, the retreat from recent highs indicates potential profit-taking or consolidation. Key support levels include $85 and $80, while resistance is seen at $90 and beyond.
Entry Suggestion: Long positions on WTI crude oil could be considered on a bounce from support near $85, targeting a retest of recent highs, with a stop-loss below $80.
Conclusion
In summary, gold continues its record-setting rally fueled by central bank buying, while USD/JPY faces selling pressure amidst a dovish BoJ stance and weak economic data from Japan. Oil prices retreat amid geopolitical developments but remain supported by supply concerns.
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