Gold’s Brilliance Persists at Elevated Levels Amid Global Uncertainty

Market News Summary

European stocks declined on Thursday as a series of company results that raised concerns, including the earnings of the giant food company Nestlé, exacerbated risk aversion, especially amid growing concerns about conflict in the Middle East and uncertainty about interest rates. The STOXX 600 European index fell 1.2% to its lowest level in two weeks amid widespread selling.

Tesla’s stock fell more than 9% on Thursday, marking its largest daily loss in three months, causing the company to lose $72 billion of its market value in a single day. These losses came after the electric car manufacturer announced results that fell short of expectations, with warnings about sales prospects.

Dollar Index (USDX)

Federal Reserve Chairman Jerome Powell acknowledged signs of a recent moderation in inflation in the United States but emphasized that this welcome slowdown in the inflation rate is not sufficient to indicate a clear trend in prices. He stated that the Federal Reserve remains committed to achieving its 2% inflation target.

Powell stated in a speech before the Economic Club of New York, “Inflation remains very high, and when multiple data points over several months come in, they will serve as the beginning only of building confidence that inflation is moving down toward the Fed’s specified target.

Pivot Point: 106.05

Resistance level	Support level
106.40	105.65
106.80	105.35
107.15	104.95

Spot Gold (XAUUSD)

With ongoing geopolitical developments in the Middle East and declining yields on two-year bonds, the shine of the safe haven, gold, continues to rise to its highest levels in months at $1982 per ounce.

Gold is currently trading and stabilizing above its pivotal point at $1978 per ounce.

Pivot Point: 1965

Resistance level	Support level
1986	1953
1998	1933
2004	1921

Dow Jones Index (DJ30ft – US30)

U.S. stock indices closed with collective losses on Thursday, driven by a sharp decline in Tesla shares and variations in the performance of Treasury bond yields following comments from the Federal Reserve Chairman. Yields on two-year Treasury bonds fell to 5.16%, their highest level since 2006, while yields on 10-year bonds rose to 4.99%, marking the first time since 2007.

The Dow Jones index declined by approximately 0.75%, equivalent to 250 points, marking its second consecutive daily decline. The S&P 500 and Nasdaq indices also fell by 0.85% and 0.96%, respectively, recording their third consecutive daily losses.

Pivot Point: 33670

Resistance level	Support level
33850	33350
34165	33170
34345	32850

US Crude Oil (USOUSD)

Oil prices rose on Thursday at the close of trading as traders expressed concerns about the potential escalation of the Israeli military campaign in Gaza into a regional conflict.

Brent crude futures increased by 88 cents, or about 1%, settling at $92.38 per barrel. Meanwhile, U.S. West Texas Intermediate crude futures gained $1.05, or 1.2%, reaching $89.37 per barrel.

Pivot Point: 88.05

Resistance level	Support level
90.65	86.55
92.10	83.95
94.70	82.50

Risk Warning

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