Gold Is at New Historical Levels

Market News Summary

The US stock exchanges suffered a significant loss of $525 billion in market value over the past three sessions, with the total market value reaching $53.2 trillion by the end of Wednesday’s session. The New York Stock Exchange was hit hard, losing $269 billion, while the Nasdaq Stock Exchange lost about $256 billion during the same period.

Federal Reserve Chairman, Jerome Powell, spoke at a press conference regarding the decision of the Federal Open Market Committee. He confirmed that the Fed will continue to monitor the impact of economic data to determine the course of monetary policy. Powell emphasized that the American banking system remains sound and flexible, but he also acknowledged that there is still a long way to go in reducing inflation rates towards the target level. He mentioned that achieving all targets will require time.

In other news, PacWest Bancorp experienced a significant decline of 56% in after-hours trading on Wednesday, following the news that the bank was considering strategic options.

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

Support level	Resistance level
100.65	101.50
100.30	102.00
99.44	102.85

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

Support level	Resistance level
2016	2050
2008	2062
2000	2086

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

Support level	Resistance level
33235	33735
33065	34070
32855	34400

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

Support level	Resistance level
66.75	70.55
65.45	73.00
63.60	74.60

This material provides real-time market analysis from contributing analysts. Please note that any views expressed in this material do not constitute operational advice. It is important to assess your risk tolerance and make independent trading decisions. STARTRADER holds no responsibility for any trading consequences that may arise from relying on the views expressed in this material.