Gold is on the Bullish
Market News Summary
European stocks ended the trading session on Monday, May 8th, on the rise, supported by gains in the healthcare and banking sectors. At the end of the session, the STOXX600 index rose by 0.35% to 466 points, while the German DAX declined by less than 0.1%, closing at 15,952 points, and the French CAC rose by 0.1% to 7,440 points.
The stock markets in London were closed yesterday for a holiday, following the coronation of King Charles on Saturday.
Dollar index (USDX)
US Treasury Secretary Janet Yellen has once again warned that she expects the Treasury to run out of cash and extraordinary measures to pay government debt by June 1st.
Yellen emphasized that the only option that would guarantee a strong position for the financial system and the economy is to raise the debt ceiling. She also warned that any harm to America’s credit rating or default would have a negative impact on the dollar as a reserve currency.
Pivot point: 101.05
| Support Level | Resistance Level |
| 100.90 | 101.30 |
| 100.65 | 101.40 |
| 100.30 | 101.80 |
Spot Gold (XAUUSD)
Gold prices rose at the close of the trading session on Monday, May 8th, marking the fourth time in the last five sessions that they have ended higher.
At settlement, gold futures increased by 0.4%, or $8.4, to reach $2,033.2 per ounce.
Pivot point: 2021
| Support Level | Resistance Level |
| 2013 | 2028 |
| 2006 | 2036 |
| 1990 | 2052 |
Dow Jones Index (DJ30ft – US30)
On Monday, the main US indices closed with divergent results after a strong rise in the previous Friday’s session, as investors awaited the release of inflation data for April, expected to be published the following Wednesday.
The Dow Jones index declined by 0.2%, equivalent to 55 points, under pressure from the technology sector, which decreased by 0.5%. The index was affected by the decline in Apple and Microsoft shares by 0.2% and 0.6%, respectively.
Meanwhile, the S&P 500 index rose slightly and closed at a stable level of 4,138 points.
Pivot point: 33695
| Support level | Resistance level |
| 33545 | 33825 |
| 33415 | 33975 |
| 33135 | 34255 |
US Crude (USOUSD)
On Tuesday, May 9th, oil prices declined in early trading, giving back some of the strong gains from the previous two sessions. The market was cautious ahead of the release of US inflation data for April, which would likely impact the next US Federal Reserve decision regarding interest rates.
Brent crude dropped by 0.4% or 31 cents to $76.70, while West Texas Intermediate crude fell by 0.3% or 23 cents to $72.92.
Pivot point: 72.50
| Support level | Resistance level |
| 71.30 | 73.90 |
| 69.85 | 75.10 |
| 67.20 | 77.75 |
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