Oil Rises and Gold Closes Low

MARKET NEWS SUMMARY

According to a press report, Russia is planning to implement large reductions in its oil exports in order to raise the price of crude oil for the West, and there is data saying that Russia may reduce its shipments from its western export centers by up to 25% by March.

The sources confirmed that the state-run Transneft oil pipeline has already informed two companies that they will receive 20-25% fewer shipments in March than they originally ordered from Russia’s western ports.

US indices ended their trading on the rise after a session of sharp fluctuations as a result of the conflicting reaction of investors about the impact of economic data on the course of interest rates and the US economy, as the Ministry of Labor revealed on Thursday that the number of Americans who applied for unemployment claims decreased unexpectedly last week.

The United States also announced that its gross domestic product grew by 2.7% in the fourth quarter of last year, compared to previous expectations of growth of 2.9%. According to Nomura Bank analysts, the strong decline at the beginning of today’s session was the result of large trading in short-term derivatives, which pressed strongly on the market.

Dollar index (USDX)

US Dollar Index chart on 24 February 2023

The US dollar index rose after data released yesterday, Thursday, that the number of Americans who filed for new applications for unemployment claims fell unexpectedly last week, and the United States announced that its gross domestic product grew by 2.7% in the fourth quarter of last year, compared to previous expectations of growth It amounts to 2.9%.

Pivot Point: 104.50

Resistance level	Support level
104.65	104.25
104.80	104.05
105.10	103.75

British Pound (GBPUSD)

The losses of the British currency came in the last position among the major losing currencies at the beginning of the American session of the currency market, as the pound declined by about 0.67% against other currencies.

The decline in the pound was driven by the statements of Catherine Mann, a member of the Monetary Policy Committee at the Bank of England, who pointed out that inflation may continue to be high during the years 2023 and 2024, indicating that in light of the slowdown in the economy, the Bank of England may be unable to reach the best the interest rate.

Pivot Point: 1.2025

Resistance level	Support level
1.2055	1.2005
1.2080	1.1980
1.2105	1.1960

Spot Gold (XAUUSD)

Gold prices recorded on Thursday, February 23rd, the lowest settlement price in nearly two months, after the issuance of the Fed’s minutes and economic data.

Upon settlement, gold futures fell by 0.8%, or $14.7, to $1,826.8 an ounce, retreating for the fourth consecutive session, and recording the lowest settlement price since December 30.

Pivot Point: 1,825

Resistance level	Support level
1,822	1,828
1,818	1,833
1,809	1,842

US Crude OIL (USOUSD)

Oil prices extended their gains for the second consecutive session, on Friday, February 24th, as the impact of expectations of lower exports from Russia outweighed the increase in inventories in the United States.

Brent crude futures rose 61 cents, or 0.7%, to $82.82 a barrel. West Texas Intermediate crude futures rose 63 cents, or 0.8%, to $76.02 a barrel.

And both ended Thursday’s trading session higher by about 2%, supported by Russia’s plans to reduce oil exports from its western ports by up to 25% in March, which exceeds its announced reduction in production by 500 thousand barrels per day.