Gold Hits New Record High Above $2300 After Fed Comments

Gold prices hit a record high on Thursday as Federal Reserve officials reiterated their expectations for rate cuts in 2024, even though the timing remains unclear, while traders await key US jobs data.

Federal Reserve officials, including US central bank chief Jerome Powell, on Wednesday continued to emphasize the need for more discussion and data before cutting interest rates, a move that financial markets expect to happen in June.

Meanwhile, US service sector growth slowed further in March, boding well for inflation expectations. The US jobs report for March is due on Friday, with new inflation data due next week.

Gold and the Dollar Now

Gold futures are now flat at $2315 an ounce. Spot gold is down about 0.18% to $2296 an ounce. It hit a record high of $2304.09 earlier in the session. On the other hand, the dollar index is flat at 103.975 points.

Other Metals

Silver fell 0.5% in spot trading to $27.08 an ounce, platinum fell 0.1% to $935.39, and palladium rose 0.4% to $1,017.83.

Oil Prices Trim Some Gains, Fall in Today’s Trading

Crude oil prices pared some of their gains and fell slightly in global market trading on Thursday, hurt by bearish US oil inventory data, which fueled speculation that US demand for crude oil could decline in the coming period, especially after the United States (the world’s largest consumer of crude oil) closed the process of refilling the strategic oil reserve

Oil Performance

On the sidelines of trading in benchmark oil contracts on Thursday, spot Brent crude fell 0.36% to $89.16 a barrel, and spot West Texas Intermediate crude fell 0.48% to $85.19 a barrel.

Why did crude oil prices fall in early trading?

Bearish US oil inventory data weighs on prices. Crude oil prices came under clear downward pressure during trading, amid growing concerns about the possibility of a decline in US demand for crude oil in the coming period, especially after data from the US Energy Information Administration revealed bearish US crude oil inventory data (the world’s largest consumer of crude oil), which pushed oil prices down in trading.

Expectations of weak US demand weigh on oil

In this regard, crude oil prices saw a clear decline during market trading, hurt by rising speculation about a slowdown in US demand for crude oil in the coming period, especially after the US Department of Energy decided to cancel its plan to refill the strategic oil reserve, as the United States had planned to buy 3 million barrels of crude oil in the next two months of August and September. The United States explained that the high crude prices contributed strongly to this decision, as the US Department confirmed that it is maintaining the interests of taxpayers as a priority for its work, which negatively affected trading in crude oil prices.

Warning Signs of an Imminent Drop in the Second Largest Cryptocurrency Below a Key Level

The second largest cryptocurrency by market capitalization, Ethereum, is trading below two critical support levels after observing continuous declines over the past week. However, the downtrend is expected to intensify in the coming days as Ethereum is currently experiencing a market top. At the time of writing, Ethereum is trading at $3,310, up 0.3% in the past 24 hours. Bitcoin has reached $65,955, up 0.8% in the past 24 hours.

Will Ethereum fall below $3000?

Despite the recent decline, Ethereum’s price came close to reclaiming $3500 as support before failing. This has led cryptocurrency investors to make profits. Currently, more than 96% of the total supply is in the profit zone. This confirms the validity of the market top. A market top refers to the highest point that an asset price reaches before the downtrend begins. It indicates the peak of investor optimism and often precedes a market correction or decline. This is confirmed when more than 95% of the supply is in profit.

Therefore, the possibility of Ethereum seeing further declines is very likely. Moreover, Ethereum selling has been increasing steadily, with exchange supply rising over the past two months. Selling by investors has led to more than 2.31 million Ethereum worth over $7.6 billion entering exchanges. Therefore, if selling continues amid bearish conditions, Ethereum’s price will find it difficult to recover, which could push the price down further.

For further insights, check OneRoyal’s Facebook, Instagram, and Twitter pages and expand your understanding of financial markets with global perspectives.  Staying informed is crucial in the ever-evolving world of finance.

Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances, or needs.

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