UBS anticipates that the demand for gold from central banks will remain robust even after a record-breaking year of purchases. In 2022, central banks acquired 1078 tons of gold, marking the highest annual demand for this precious metal since 1950, more than doubling the previous year’s level. UBS also projects that the price of gold could climb to $2,100 per ounce by the end of this year and reach $2,200 by March 2024.

European indices concluded the trading week on Friday, May 19, with gains. The STOXX600 index climbed by 0.66% to reach 469 points, marking its highest level in a year.

The French CAC rose by 0.6% to reach 7,491 points, while the German DAX soared by 0.69% to hit an all-time high of 16,275 points. The British FTSE closed the session with a 0.19% increase at 7,756 points.

Dollar index (USDX)

On Monday, May 22, the dollar experienced further declines against the yen and the euro, prompted by unexpected setbacks in US debt ceiling negotiations and comments from US Federal Reserve Chairman Jerome Powell indicating a preference for a slower pace of interest rate hikes.

At the start of the trading week, the dollar slipped 0.15% against the yen to 137.725, breaking a six-day winning streak it had enjoyed and retreating from a six-month high. Meanwhile, the euro continued its upward trend, rising 0.14% against the dollar to 1.08205. This followed its rebound on Friday from a seven-week low.

Investors are now eagerly awaiting a crucial meeting between US President Joe Biden and Republican House Speaker Kevin McCarthy, scheduled for Monday, to discuss the issue of raising the debt ceiling.

The dollar index, which gauges the performance of the US currency against a basket of six major currencies, experienced minimal fluctuations, reaching 103.07 points. It remains close to the peak of 103.63 points reached the previous week, which was last seen on March 20.

Pivot point: 103.10

Resistance level	Support level
103.40	102.75
103.75	102.50
104.00	102.15

Spot Gold (XAUUSD)

Gold futures saw a rebound at the close of trading on Friday, May 19th, marking their first increase in four sessions. However, despite the gain, they recorded the largest weekly losses in over seven weeks.

At settlement, gold futures rose by 1.1%, equivalent to $21.8, reaching $1981.6 per ounce. Nonetheless, the metal experienced a weekly loss of approximately 1.9%, marking its most significant decline since February.

Pivot Point: 1971

Resistance level	Support level
1989	1959
2002	1941
2019	1929

Dow Jones Index (DJ30ft – US30)

US indices concluded the trading session on Friday, May 19th, with declines following a temporary pause in debt ceiling discussions between Republicans and Democrats. However, they still achieved weekly gains.

As America approaches a potential debt default, the US Treasury Department has issued warnings about the possibility of exhausting exceptional measures to meet debt obligations early next month.

By the session’s close, the Dow Jones index declined by 0.3% to reach 33,426 points, while the S&P 500 fell by 0.14% to 4,191 points. Nevertheless, the S&P 500 achieved a weekly increase of 1.65%, marking its best performance since March. The Nasdaq also closed down by 0.24%, recording 12,657 points.

Pivot point: 33525

Resistance level	Support level
33660	33320
33860	33190
34000	32985

US Crude (USOUSD)

Oil prices climbed today, Monday, propelled by the weakening of the dollar and supply reductions from Canada and OPEC+ producers.

Brent crude futures increased by 14 cents, or 0.2%, reaching $75.72 per barrel. The most actively traded futures contract, US West Texas Intermediate crude for July delivery, rose by 15 cents, or 0.2%, to $71.84.

Pivot point: 72.20

Support level	Support level
73.20	70.85
77.55	69.80
75.60	68.45

Risk Warning

This article provides real-time market analysis from contributing analysts. Please note that any views expressed in this article 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 article.