Interest rate cuts hope to weaken the impact of overshadowing safe haven demand The unsustainable rise of the US dollar and the stunning appearance of the "Twilight Star" in the fall of gold prices

18 Apr, 2024

On Wednesday (April 17th), the US dollar index ended its five consecutive positive days on the daily chart, falling below the 106 mark and ultimately closing down 0.401% at 105.94.

On Wednesday (April 17th), the US dollar index ended its five consecutive positive days on the daily chart, falling below the 106 mark and ultimately closing down 0.401% at 105.94. The collective decline in US bond yields was due to strong demand for US bond auctions. The 10-year US Treasury yield fell from a five month high and ultimately closed at 4.611%. The yield on the 2-year US Treasury, which is most sensitive to the Federal Reserve's policy interest rates, closed at 4.945%.

 

On Wednesday (April 17th), gold prices fell 0.9% to close at $2361.14 per ounce, as the pressure from weakened US interest rate cuts overshadowed the boost from safe haven demand caused by geopolitical turmoil in the Middle East. From the daily chart, it can be seen that gold prices have seen a K-line combination similar to the "Twilight Star" near historical highs, indicating that the gold price has initially peaked, and investors need to be cautious of the possibility of future market declines or deep pullbacks.

 

Due to the increase in crude oil inventories and the growing market distrust of a broader war between Iran and Israel, which will affect oil supply, international oil prices have plummeted. WTI crude oil fell for the second consecutive trading day on Wednesday (April 17th), ultimately closing down 3.46% at $82.26 per barrel, the lowest since April; Brent crude oil closed down 2.93% at $87.38 per barrel on Wednesday (April 17th).

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