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.

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
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • ...here is Gold overlaid with the net speculative futures positioning from the COT. It was fairly heavy net-long but not overindulgent. Worth evaluating its full haven properties an if they still apply https://t.co/aqlfmlUbYl
  • Gold isn't acting like a safe haven - or at least a traditional one. Clearing support back to late July in this risk-off environment. Was there speculative funds topping this off that need to be freed up for margin elsewhere? https://t.co/iBwRuflOgr
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.04% 🇨🇭CHF: -0.52% 🇨🇦CAD: -0.62% 🇬🇧GBP: -0.93% 🇦🇺AUD: -1.13% 🇳🇿NZD: -1.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/BmGU19q98W
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: -2.56% Wall Street: -3.10% FTSE 100: -3.91% France 40: -4.17% Germany 30: -4.80% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/YLmOh370Qu
  • ...and a well-known carry trade pair, $AUDJPY, has started to tip into retreat - though I wouldn't say this has the same scale of discreet directional change https://t.co/rYEdGMWS8b
  • The $EEM emerging market ETF has opened to a sharp gap down on the open and some follow through, but technically still above its range floor at the moment https://t.co/Lssj70sAqW
  • $EURUSD levels from this morning's webinar looking good. . Archive out shortly . . https://t.co/ygTCGJYrmQ
  • Elsewhere, the popular $HYG 'junk bond' ETF has slipped below a long-term Fib and range floor at 84 - though it finds itself now at the 200 DMA https://t.co/DCVzVMhDrH
  • ...Australia's ASX 200 has its own breakdown but it isn't as dramatic a reversal after months of horizontal congestion https://t.co/uiKXEyHXql
  • ...the Japanese Nikkei 225 ($NKY_F) has produced a very similar rising wedge bearish breakdown of its own: https://t.co/DDGqRs7MwD
Copper Plunges, Gold Advances Towards Key Resistance At $1,336

Copper Plunges, Gold Advances Towards Key Resistance At $1,336

2014-02-24 10:56:00
David de Ferranti, Currency Analyst
Share:

Talking Points

  • Crude Oil Surges Above $97.50 Following Bullish Inventories Figures
  • Gold Swings Higher As US Data May Suggest Less-Aggressive “Taper” Timeline
  • Precious Metals Could Weaken Ahead of Upcoming FOMC Meeting

Gold soared above the $1,260 level as a disappointing US PMI reading may have tempered Fed “taper” bets, sparking renewed demand for the yellow metal. However, Crude oil shrugged off the discouraging US economic data as a bullish weekly inventories report sent WTI above $97.50, for the fourth straight day of gains.

The Energy Information Agency (EIA) report revealed that crude stockpiles grew by 990,000 barrels for the week, which was slower than the build of 1.15 million anticipated by analysts. Newswires have reported this may have been due to a swell in heating demand, as frigid weather conditions continue to grip the East Coast.

A light economic docket in the session ahead may leave Gold and Oil wanting for a fresh catalyst to spur on additional gains. This may result in some consolidation ahead of the weekend. Yet, trading activity is likely to be reignited next week in the lead up to the FOMC Meeting set to take place on Wednesday. Economists are currently expecting the central bank to continue cuts to their QE program, which may put selling pressure on the precious metals in the near-term.

The DailyFX Speculative Sentiment Index is providing a mixed bias on gold.

CRUDE OIL TECHNICAL ANALYSIS The 61.8% Fib Retracement Level is suggesting some support around the psychologically significant $97 handle, while resistance looms ahead at 98.80 (the yearly high). A short-term uptrend as signaled by gaining upside momentum on the rate of change indicator, as well as prices being above the 20 SMA, favors the upside.

Copper_Plunges_Gold_Advances_Towards_Key_Resistance_At_1336_body_Picture_4.png, Copper Plunges, Gold Advances Towards Key Resistance At $1,336

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS The 38.2% Fib Retracement Level and 20 SMA provided a launching pad for gold as buyers moved in and swung prices above previous resistance (now support) at $1,256. A break above the December 2013 high at $1,264 would open up the $1,270 level.

Copper_Plunges_Gold_Advances_Towards_Key_Resistance_At_1336_body_Picture_3.png, Copper Plunges, Gold Advances Towards Key Resistance At $1,336

Daily Chart - Created Using FXCM Marketscope 2.0

SILVER TECHNICAL ANALYSIS Silver’s price action remains muted compared with its bigger brother, gold. Upside resistance remains at $20.48, while buying support is sitting at $19. With volatility near multi-year lows, range-trading remains preferred.

Copper_Plunges_Gold_Advances_Towards_Key_Resistance_At_1336_body_Picture_2.png, Copper Plunges, Gold Advances Towards Key Resistance At $1,336

Daily Chart - Created Using FXCM Marketscope 2.0

COPPER TECHNICAL ANALYSIS Copper has found some buying support at $3.273 following the break below an ascending triangle pattern. A move below the 50% Fib Retracement Level would open up the $3.237 level.

Copper_Plunges_Gold_Advances_Towards_Key_Resistance_At_1336_body_Picture_1.png, Copper Plunges, Gold Advances Towards Key Resistance At $1,336

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