Gold is Close to 1770 Levels

Gold plates or bars amid Gold is Close to 1770 Levels

MARKET NEWS SUMMARY

US indices ended their trading with a sharp decline in the Friday session, recording their largest weekly loss since the beginning of this year. This decline comes with the investors’ greater fears of a further increase in interest rates by the US Fed after the release of the Core PCE Price Index.

Friday’s data showed that the Core PCE Price Index, the Fed’s preferred measure of inflation, rose 0.6% last month after rising just 0.2% in December.

The S&P 500 index fell by about 1% in the Friday session to close at 3970 points amid a decline in most of the main sectors, especially technology and consumer. Moreover, the Nasdaq Composite Index fell by 1.7%, to lose all the gains of this February and close below the moving average levels for a period of 200 days. Throughout the week, the Nasdaq index fell by more than 3%, recording the largest weekly loss in 3 months.

Dollar index (USDX)

The dollar index continued to rise with more of positive data on the US economy and the increase in the Fed’s need to raise interest rates.

Technically, momentum indicators support the more bullish movement, as is it the case with the trend indicators of moving averages and EMA for the general trend. Meanwhile, the dollar index tries to hold above its pivotal point at 104.95.

Pivot Point: 104.95

Resistance level	Support level
105.50	104.60
105.85	104.05
106.70	103.75

British Pound (GBPUSD)

The pound fell by 0.60% against the dollar at $1.1951 on Friday to continue its bearish trend at the beginning of today’s session, driven by the strength of the US dollar.

Technically, technical readings are still negative from momentum and trend indicators, and the pound is trying to settle below its resistance levels at 1.1965.

Pivot Point: 1.1965

Resistance level	Support level
1.2010	1.8950
1.2080	1.1854
1.2105	1.1785

Spot Gold (XAUUSD)

Gold prices hit the lowest settlement price in 2023 on Friday, February 24th, and thus registered their fourth consecutive weekly loss.

Upon settlement, gold futures fell by 0.5% to $1817.10 an ounce, recording a weekly loss of about 1.3%.

Coinciding with the decline in gold prices, both the dollar and the US Treasury bond yield have recorded increases since the beginning of February.

Pivot Point: 1,815

Resistance level	Support level
1,822	1,803
1,835	1,796
1,842	1,777

US Crude oil (USOUSD)

Daniel Opajtec, CEO of the Polish oil refining company (BKN Orlin), said today, Saturday, that Russia had stopped oil supplies to Poland through the Druzhba pipeline.

“We are getting supplies effectively. Russia has stopped supplies to Poland, and we are ready to face that. Only 10% of crude oil comes from Russia, and we will replace it with oil from other sources,” he said on Twitter.

(PKN Orlen) said that it can supply its refineries entirely by sea, so stopping pipeline supplies will not affect shipments of gasoline and diesel to customers. Furthermore, Drogba was exempted from the sanctions imposed by the European Union on Russia after its invasion of Ukraine.

The pipeline, which supplies oil to Poland and Germany as well as Hungary, the Czech Republic and Slovakia, was excluded from the sanctions to help countries that have limited options for alternative shipments.