U.S. stocks posted modest gains yesterday during a short trading session. When looking at the recent market movements, we can see that the Dow ended slightly above the flatline adding 0.03%. Moreover, the S&P500 rose 0.12% while the Nasdaq composite advanced 0.21%. Technology stocks continue to support a big part of the market’s year-to-date performance, meanwhile, Tesla shares rallied 6.9% on Monday after the company reported higher-than-expected delivery and production figures. As a reminder, the U.S. market will be closed today in celebration of July 4th independence day. Therefore, low liquidity is expected.
Daily Market Report
During the Asian session, the Reserve Bank of Australia kept interest rates unchanged at 4.10% as widely expected. The central bank said that future decisions will be data-dependent and kept the door open for further tightening if needed. The RBA will continue monitoring the latest developments in economic growth and inflation levels to decide the future path for rates.
On the other side, the U.S. Dollar was little changed in a quiet session as the Dollar index settled near the 103.00 mark. In the meantime, gold extended its recovery with prices reaching a high of $1930 per ounce on Monday before retreating lower. Technically, the yellow metal remains under pressure as the short-term trend is bearish, therefore, any advance is expected to stay limited while prices continue to trade below the 1932-1937 resistance zone. On the flip side, the support level to watch today is located at the 1910 level.
In addition, WTI crude extended its recent advance stabilizing above the $70 mark. However, oil prices still lack bullish momentum as we have seen another failure below the 72.50 resistance mentioned in our previous reports. From a technical standpoint, WTI prices are still stuck inside a wide range as per the chart below with $67.00 a barrel acting as the main support. Therefore, sellers need to wait for a clear break below this level to validate a new wave of decline in the coming days, otherwise, oil is likely to keep trading sideways.