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
Oil - US Crude
Bullish
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
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/xGuTYZqYwh
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/EvRHfRQLgk
  • The Australian Dollar remains vulnerable in the week ahead, eyeing risks such as a dovish RBA, surging Covid cases and recent crackdowns by Beijing. Might US NFPs offer some relief to AUD/USD? Get your weekly AUD forecast from @ddubrovskyFX here: https://t.co/LQzQymM3ND https://t.co/XOCJl3vbu1
  • $AUDNZD closed at its lowest since December 2020 Prices pierced the 1.0541 - 1.0564 support zone, exposing the November low at 1.0418 A confirmatory downside close under support next week may open the door to further losses #AUD #RBA https://t.co/mybbgPHNX4
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/k49UosZOUR
  • The US Dollar seems to be losing its momentum against ASEAN currencies as of late. Could this be another top in USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/rVBKBuhhAb https://t.co/lTT6oelIEc
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/JTw3w7KYXP
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.10% 🇪🇺EUR: -0.15% 🇯🇵JPY: -0.18% 🇬🇧GBP: -0.39% 🇳🇿NZD: -0.56% 🇦🇺AUD: -0.69% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/a8XYJHybtN
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: -0.05% Oil - US Crude: -0.25% Gold: -0.77% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/C66zBofenc
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.72%, while traders in France 40 are at opposite extremes with 71.64%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/6QmJTzlrho
Gold and Silver Drifting Lower as US Dollar Continues Advance

Gold and Silver Drifting Lower as US Dollar Continues Advance

David de Ferranti, Currency Analyst

Talking Points

  • Gold and silver drifting lower in Asian trading as US Dollar continues advance
  • US economic data released overnight has done little to alter the course of the greenback
  • Crude treading water following release of DOE inventories report

Gold and silver are floundering in Asian trading as the US dollar continues its cautious advance higher. With a light economic docket for the final trading session of the week, the precious metals are unlikely to find a catalyst spark a turnaround.

US Dollar Bounce Weighs on Precious Metals

The US Dollar is heading for its fifth straight session of gains in early trading. US inflation data that printed in-line with expectations and a slightly weaker-than-expected jobless claims print released overnight, did little to alter the upward trajectory of the currency.

The recent recovery in the greenback has likely suppressed gains in gold over the past several trading sessions as the precious metal heads for a flat finish for the trading week. While profit-taking has likely played a part in helping the USD recover some lost ground, a more compelling reason for the rally may lie with firming Fed policy expectations.

A hawkish tone in the Fed January meeting minutes released this week, bolstered the greenback and weakened demand for gold as a fiat money alternative. Thus going forward, in the absence of a material deterioration in US economic data, the prospect of continued stimulus cuts may fuel further US Dollar gains, which may in turn weigh on gold and silver.

Crude Oil Treading Water Following Inventories Report

The Department of Energy’s Weekly Petroleum Status Report revealed that distillate inventories declined by 339K barrels, which was far less than economists’ expectations for a fall of 2.1 million. While the report suggested weakness for WTI, a general drift higher in risk-assets likely offset declines, leaving the commodity flat for the session.

The Speculative Sentiment Index is suggesting a mixed bias for Gold.

CRUDE OIL TECHNICAL ANALYSIS The Doji candlestick posted on the daily does little to confirm a potential reversal signal from the Hanging Man pattern preceding it. Without a more meaningful sign of a correction given the ongoing uptrend, we are left with a bullish technical bias for oil. Key resistance looms overhead at $103.30.

Gold_and_Silver_Drifting_Lower_as_US_Dollar_Continues_Advance_body_Picture_4.png, Gold and Silver Drifting Lower as US Dollar Continues Advance

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS The recent rally in gold is showing signs of fading upside momentum as the precious metal wavers around the $1,320 mark. However, given the uptrend is still intact a more meaningful reversal signal would be required before offering a bearish bias. Buyers appear to be prepared to support gold at $1,309.

Gold_and_Silver_Drifting_Lower_as_US_Dollar_Continues_Advance_body_Picture_3.png, Gold and Silver Drifting Lower as US Dollar Continues Advance

Daily Chart - Created Using FXCM Marketscope 2.0

SILVER TECHNICAL ANALYSIS Recent price action in Silver is indicative of indecision amongst traders with the precious metal. The daily chart has posted a Harami candlestick pattern, indicating buyers have been unable to push prices back towards their recent highs. A shift in the trend would be needed before offering a bearish bias.

Gold_and_Silver_Drifting_Lower_as_US_Dollar_Continues_Advance_body_Picture_2.png, Gold and Silver Drifting Lower as US Dollar Continues Advance

Daily Chart - Created Using FXCM Marketscope 2.0

COPPER TECHNICAL ANALYSIS While copper has recovered some lost ground over the past couple of weeks, sellers are capping further gains at the $3.30 level. This has resulted in a Hanging Man formation on the daily which is warning of a potential correction ahead. However, there is an indication of an uptrend (with prices above their 20 SMA), thus waiting for a shift in the trend would be preferred before looking at shorts. A break below nearby buying support at $3.255 may open a further decline towards the 2014 low at $3.175.

Gold_and_Silver_Drifting_Lower_as_US_Dollar_Continues_Advance_body_Picture_1.png, Gold and Silver Drifting Lower as US Dollar Continues Advance

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