market news summary

In many high-level speeches and economic studies presented at the annual conference of central bank governors held by the Federal Reserve Bank in Jackson Hole, Wyoming on Friday and Saturday, clear concerns have emerged about several issues. These include the rise of trade barriers, aging populations, the transition from carbon-emitting fossil fuels to renewable energy, which could intensify global inflation pressures in the coming years.

Four of the largest US technology companies suffered significant losses in market value during August, as US stocks are heading for their worst monthly performance in 2023. Apple, Tesla, Meta, and Microsoft collectively lost $625 billion in market capitalization this month.

Dollar Index (USDX)

The dollar achieved gains for the sixth consecutive week, and the markets are eagerly anticipating several important economic data releases in the United States this week, notably the Gross Domestic Product (GDP) figures and the job-related data to be released next Friday.

Currently, the dollar index is trading around the pivotal point at $104.00

Pivot point: 104.05

Resistance level	Support level
104.45	103.75
104.75	103.35
105.15	103.00

Spot Gold (XAUUSD)

Gold prices declined during the trading session on Friday, August 25th, as the dollar rose to its highest level in ten weeks. However, gold recorded a weekly increase following the speech by the Chairman of the US Federal Reserve in Jackson Hole.

Jerome Powell left the door open for potential future interest rate hikes and indicated an intention to maintain the tightening policy for a longer period.

Gold futures dropped by 0.2% to $1914.16 per ounce at the end of Friday’s trading. Nevertheless, gold registered strong weekly gains of 1.38%.

Pivot point: 1913

Resistance level	Support level
1923	1904
1932	1894
1941	1885

Dow Jones Index (DJ30ft – US30)

The US indices rose at the close of trading on Friday, driven partly by traders’ optimism fueled by Powell’s confidence in the ongoing economic growth in the United States. He highlighted the “particularly strong” consumer spending and early signs of a housing market recovery. The central bank reiterated its commitment to bringing inflation down to its 2% target.

The Dow Jones Industrial Average index increased by approximately 247.48 points, or 0.7%, to reach 34,346.90 points, after having surged over 300 points at its peak during Friday’s session.

Pivot point: 34305

Resistance level	Support level
34550	34130
34725	33885
34970	33715

US Crude (USOUSD)

Oil prices rose by approximately 1% to reach the highest level in a week during Friday’s trading, driven by an increase in diesel prices in the United States, a decrease in the number of oil rigs, and a refinery fire in Louisiana.

Brent crude increased by $1.12, or 1.3%, to settle at $84.48 per barrel. West Texas Intermediate (WTI) crude rose by 78 cents, or 1.0%, to settle at $79.83. Diesel futures also saw an increase of around 5%, reaching their highest level in nearly seven months.

Pivot point: 79.50

Resistance level	Support level
80.90	78.65
81.80	77.25
83.20	76.35

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