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
Mixed
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
Gold Prices Rise as Geopolitics Weigh on Market Mood

Gold Prices Rise as Geopolitics Weigh on Market Mood

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • Gold prices get a boost as US Dollar, Treasury yields decline
  • Crude oil prices find shaky balance amid conflicting influences
  • Markets preoccupied with geopolitics as G20 meets in Bonn

Gold prices rose as the US Dollar fell alongside Treasury bond yields. The move may have reflected profit-taking after markets exhausted the week’s Fed policy-defining news flow. Jitters ahead of an upcoming G20 foreign ministers’ meeting – the first to be attended by members of the Trump administration – may have encouraged a cautious disposition. Traders are probably concerned that belligerent campaign rhetoric may re-emerge, especially after US Defense Secretary Mattis put the screws on NATO yesterday.

Crude oil prices finished yesterday’s session little-changed, with the WTI benchmark seemingly finding a balance between conflicting catalysts. US Dollar weakness probably helped limit losses for the USD-denominated contract but a surge in inventories likely capped the upside. Stockpiles added 9.5 million barrels last week according to figures from the EIA, topping forecasts calling for a 3.5mb increase. The swell echoed a private-sector estimate from API.

Geopolitical concerns may continue to dominate the spotlight in the hours ahead. A lull in heavy-duty economics news flow will probably have investors wholly engrossed in the G20 proceedings in Bonn, Germany. S&P 500 futures are pointing lower ahead of the opening bell on Wall Street, hinting the mood remains uneasy. That seems to make for a supportive environment for gold, though how crude oil will respond is somewhat murky.

Are gold and crude oil prices matching DailyFX analysts’ first-quarter bets? Find out here!

GOLD TECHNICAL ANALYSISGold prices have yet to make good on a Bearish Engulfing candlestick pattern though the setup remains valid. A break below the 38.2% Fibonacci retracementat 1219.20 on a daily closing basis exposes the 23.6% level at 1182.36. Alternatively, a push above the 50% Fib at 1248.98 targets the 61.8% retracementat 1278.76.

Gold Prices Rise as Geopolitics Weigh on Market Mood

Chart created using TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil pricesremain stuck below range resistance at 53.86. A daily close above this barrier exposes the 55.21-65 area (January 3 high, 38.2% Fibonacci expansion). Alternatively, a drop below rising trend line support, now at 51.85, targets the 38.2% Fib retracement at 50.25.

Gold Prices Rise as Geopolitics Weigh on Market Mood

Chart created using TradingView

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

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

DISCLOSURES