May 05th Daily Analysis
May 05th Daily Analysis3
DOLLAR INDEX (USDX)
Today, investors are awaiting job data and unemployment rates to get a clearer picture of the US economy, while the dollar continues to stabilize above the 101.00 levels within a general bearish trend.
Pivot Point: 101.05
SPOT GOLD (XAUUSD)
Gold futures rose at the close of trading on Thursday, May 4, for the third consecutive session, approaching a new record.
At settlement, gold futures increased by 0.8%, or $18.70, to $2,055.70 an ounce, marking its highest level since August 2020.
The general weakness of the US dollar, the crisis in the banking sector, and fears of a possible recession in the US economy have boosted the safe-haven demand for precious metals.
Pivot Point: 2052
DOW JONES INDEX (DJ30FT – US30)
US indices continued to decline for the fourth consecutive session, under pressure from the financial sector stocks. There are renewed investor concerns about the health of regional banks, which contributed to a sharp decline in the stocks of major banks.
The fear index rose by about 10% to its highest level in more than a month, coinciding with developments in the banking sector.
The Dow Jones index fell by 0.9%, or 268 points, recording its lowest close since late March.
The S&P 500 index fell by 0.7% to 4,061 points, and the Nasdaq Composite Index lost 0.5% or 12,000 points.
Pivot Point: 33245
US CRUDE (USOUSD)
Oil prices closed slightly lower on Thursday, May 4th, after the European Central Bank decided to slow the pace of interest rate hikes. However, prices were still down more than 9% for the week due to demand concerns in major consuming countries.
At settlement, Brent crude futures fell by 17 cents, or 0.24%, to close at $72.50 a barrel, while West Texas Intermediate crude fell by 4 cents, or 0.06%, to $68.56.
Oil prices fell this week due to concerns about the US economy and signs of weak manufacturing growth in China, the world’s largest oil importer. Prices fell further after the Federal Reserve raised interest rates on Wednesday, May 3rd, to their highest levels since 2007.
Pivot Point: 67.30