News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
  • RT @michaeljburry: Read thread.
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/AueigVsuk4
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/OJByiwIppr https://t.co/P1iOONG90N
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/UcleaZEAaW https://t.co/62bGLvt8fE
  • The Canadian Dollar has been caught in broad ranges against the Euro and the US Dollar, but can the upside bias in USD/CAD and EUR/CAD prolong? Find out here:https://t.co/8DubboXsjv https://t.co/A0sIYo2iP1
  • Want to hear my thoughts on the US Dollar? Check out yesterday's recording with #AuzBiz hosted by @KaraOrdway on 'The Trade' We discussed a #USD index, Treasury yields, $USDJPY, $AUDUSD and $NZDUSD https://t.co/yxwquL1btp https://t.co/RtWjlN6kpv
  • Gold has plunged nearly 5% off the Monthly high with the sell-off now probing key weekly support here at 1738/47- looking for a pivot here with the Fed interest rate decision on tap. Get your $XAUUSD market update from @MBForex here:https://t.co/Vnxi41lETt https://t.co/FyZuHNzsU3
  • Feels like the market has been front-running next week’s FOMC announcement, which will reveal updated dot plot projections. Expectations clearly set for a more hawkish shift in guidance. That said, if the Fed does not deliver, US Dollar bulls could be disappointed. $USD $DXY https://t.co/o2v6ibac3L
  • USD/CAD has been chopping around the past week-and-a-half, offering virtually no cues on its next direction. Get your market update from @PaulRobinsonFX here:https://t.co/eq1YkOa3mC https://t.co/V6h8BjyeGa
Gold and Silver Slump as Oil Turns Higher Post US Q4 GDP

Gold and Silver Slump as Oil Turns Higher Post US Q4 GDP

David de Ferranti, Currency Analyst

Talking Points

  • Crude Oil Strengthens Following US GDP Print
  • Silver Plunges To Lowest Close In Over a Month
  • Revised Confidence Data May Boost Crude Oil

Crude oil added to recent gains to close higher for the third straight day in a row. The WTI contract rallied alongside risk assets including the SPX500, after it was reported the US economy grew at an annualized pace of 3.2 percent for the fourth quarter. While the print was in line with expectations, the growth figures may have helped alleviate some investor concerns over the pace of the US economic recovery, which in turn bolstered risk appetite.

The GDP data may have also raised speculation for a timely QE “taper” from the Fed, which weighed on precious metals. The most notable decline was in silver, which plunged by roughly three percent to finish at the lowest closing level in more than a month.

Looking ahead, a fairly light US economic data docket on Friday offers few catalysts that could fuel volatility in the commodities space. The revised U. of Michigan Consumer Confidence reading may offer some limited guidance. An upside surprise would likelybuoy investor risk appetite and demand for crude. However, it may also raise the likelihood of additional stimulus cuts from the Federal Reserve, which could weaken gold and silver. Indeed, such a reaction was witnessed following the release of the higher-than-expected Conference Board consumer sentiment reading earlier in the week.

CRUDE OIL TECHNICAL ANALYSIS Crude prices have offered a tentative break above the descending trend line from the September 2013 high, and are probing above resistance at the $97.70 mark. Alongside a short-term uptrend (indicated by the 20 SMA) a bullish bias is favored. Selling pressure may emerge at the nearby $98.75 figure.

Gold_and_Silver_Slump_as_Oil_Turns_Higher_Post_US_Q4_GDP_body_Picture_5.png, Gold and Silver Slump as Oil Turns Higher Post US Q4 GDP

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS Gold has broken trend line support from early January as well as cleared out buyers who were sitting at $1,256. This may act as confirmation of the Dark Cloud Cover candlestick formation noted previously and is supporting a tentative bearish bias for the precious metal. Fresh buying support may emerge at the unusually tidy $1,234 figure.

Gold_and_Silver_Slump_as_Oil_Turns_Higher_Post_US_Q4_GDP_body_Picture_6.png, Gold and Silver Slump as Oil Turns Higher Post US Q4 GDP

Daily Chart - Created Using FXCM Marketscope 2.0

SILVER TECHNICAL ANALYSIS Silver has plunged through the bottom of the ascending triangle formation on the daily which comes as sellers have kept prices contained within the descending channel. As discussed previously, the psychologically significant $19 handle offers buying support. A bearish bias is favored on another break lower.

Gold_and_Silver_Slump_as_Oil_Turns_Higher_Post_US_Q4_GDP_body_Picture_7.png, Gold and Silver Slump as Oil Turns Higher Post US Q4 GDP

Daily Chart - Created Using FXCM Marketscope 2.0

COPPER TECHNICAL ANALYSIS The bearish signals for copper have materialized in further weakness for the commodity. While the bias remains to the downside over the near-term (weeks), buyers at the bottom of the descending trend channel may help keep prices supported over the next few days. Resistance looms above at $3.245.

Gold_and_Silver_Slump_as_Oil_Turns_Higher_Post_US_Q4_GDP_body_Picture_8.png, Gold and Silver Slump as Oil Turns Higher Post US Q4 GDP

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by David de Ferranti, Market Analyst, FXCM Australia

To receive David’sanalysis directly via email, please sign up here

Contact and follow David on Twitter: @DaviddeFe

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES