May 04th Daily Analysis
May 04th Daily Analysis3
DOLLAR INDEX (USDX)
After the Federal Reserve meeting on the previous day, the dollar index declined by 0.2%. This occurred as the US Federal Reserve raised interest rates by 25 basis points, which was as expected by the market. However, the Central Bank did not explicitly state its “expectations” regarding the need for further rate hikes. Instead, it indicated that it would keep a close watch on upcoming data to assess whether further rate hikes “may be appropriate.”
Pivot Point: 101.15
SPOT GOLD (XAUUSD)
Following the Federal Reserve’s decision to raise interest rates by 25 basis points and signal a possible pause in further rate hikes, gold prices surged to near record high levels on Thursday.
Spot gold transactions rose by 0.8% to $2,055.54 per ounce, while US gold futures rose 1.3% to $2,063.20 per ounce.
During the earlier session, gold prices briefly peaked at $2,072.19 per ounce, coming close to its all-time high of $2,072.49 per ounce, which was reached in 2020.
Pivot Point: 2028
DOW JONES INDEX (DJ30FT – US30)
On Wednesday, US stocks relinquished their gains and closed lower, following remarks made by Federal Reserve Chairman Jerome Powell that raised concerns among investors regarding the central bank’s next steps to increase interest rates.
After the Federal Reserve raised interest rates by a quarter of a percentage point as expected and suggested a possible temporary pause in further interest-raising measures, stock indices initially held onto their gains. However, during a press conference after the statement was released, Powell stated that the Fed still views inflation as too high, and that it is premature to conclude that the cycle of rate hikes has ended.
The Dow Jones index dropped by 0.8%, or 270 points, marking the third consecutive daily decline and a total decline of over 2% since the beginning of the week.
The S&P 500 index fell by 0.5%, losing 4,100 points, while the Nasdaq Composite Index dropped by 0.5% to close at 12,025 points.
Pivot Point: 33565
US CRUDE (USOUSD)
Oil prices fell by 4% at the close of the trading session on Wednesday, continuing their downward trend, particularly after the US Federal Reserve raised interest rates, which made investors worry about the economy.
Brent crude futures closed down $2.99, or 4%, at $72.33 a barrel, the lowest closing since December 2021. Brent crude hit a session low of $71.70 a barrel, the lowest since March 20.
US West Texas Intermediate crude dropped by $3.06, or 4.3%, to $68.60 a barrel. The lowest point for crude during the session was at $67.95, which is the lowest since March 24. However, oil prices fell to $63.65 per barrel at the market opening today before rising again to stabilize at its pivot point.
Pivot Point: 69.25