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
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
Wall Street
Bearish
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • #Silver retracing its losses earlier in the session as price carves out a Bear Flag pattern With resistance at $25 holding firm, further losses appear in the offing A daily close below the 21-DMA (24.20) may open the door for a retest of 61.8% Fib support (21.74) $SLVR $SLV https://t.co/rCl3Ms3FB3
  • The Nasdaq 100 index looks set to pull back amid bearish momentum in the near term. The 50-Day Simple Moving Average (SMA) line may serve as an immediate support. Get your #equities update from @margaretyjy here: https://t.co/5Axsg6gAdd https://t.co/rToHnPLSeS
  • $GBPUSD the outlier early in the session, up marginally as UK-EU Brexit negotiators extend talks until October 28 https://t.co/ey92YW4RJw
  • #CrudeOil down 1.95% on the back of tightening #COVID19 restrictions in several European nations $EURUSD nudging marginally lower https://t.co/PUWTfKl08f https://t.co/XuyQOzV6sj
  • Market Snapshot Broad risk-off tilt to kick-off APAC trade #Gold and #CrudeOil prices plunging lower alongside the risk-sensitive $AUDUSD Haven-linked $JPY and $USD moving higher against their major counterparts
  • Wall Street Futures Update: Dow Jones (-0.504%) S&P 500 (-0.536%) Nasdaq 100 (-0.484%) [delayed] -BBG
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/zSCf8azESa
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZnn4H
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/ZJOEtpGUIq https://t.co/tJWOXZCoBw
  • The US Dollar may seesaw as investors navigate what could be a volatile week packed with US GDP data, rising Covid-19 cases, Q3 corporate earnings and more. Get your #currencies update from @ZabelinDimitri here: https://t.co/UNRcd3c9uA https://t.co/BiUiOV4cXC
Gold Prices Snap Losing Streak, May Extend Gains on Risk Aversion

Gold Prices Snap Losing Streak, May Extend Gains on Risk Aversion

2017-05-12 05:44:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • Gold prices snapped the longest losing streak in 7 months
  • Yields drop in risk-off trade may help extend the rebound
  • Crude oil prices rose even as OPEC foresaw supply swell

Gold prices edged, snapping the longest losing streak since October 2016. Treasury yields declined as stocks fell and capital fled to the safety of government debt, boosting the relative appeal of non-interest-bearing assets including the yellow metal.

Crude oil prices continued to edge up even as OPEC acknowledged the challenge to its production cut scheme posed by swelling swing supply. The cartel revised its 2017 projection for non-member output by a hefty 64 percent to 950k b/d.

A weaker US Dollar may have accounted for crude’s gains. The greenback registered its first decline in five sessions and the largest in a month. That may have offered de-facto support to oil prices denominated in terms of the benchmark currency on global markets.

Looking ahead, a hefty dollop of top-tier US economic data may pass without fireworks. CPI, retail sales and consumer confidence statistics are all due to cross the wires. Their limited implications for Fed policy bets now that a June rate hike is fully priced in may rob them of market-moving potential.

Baker Hughes rig count figures are also on tap. The number of active US oil extraction points has increased for 16 consecutive weeks however, so another uptick will probably pass for status quo unless the increase is unusually large (greater than 18, say). An out-of-character decline will also command attention.

On balance, this may see sentiment trends dominate the spotlight once again. Shares declined in Asia and S&P 500 futures are pointing downward, hinting that more of the same may be in store through the week-end. That might translate into gold gains as yields fall but the implications for crude oil are as yet unclear.

Have a question about trading gold and crude oil? Join a Q&A webinar and ask it live!

GOLD TECHNICAL ANALYSISGold prices put in a bullish Morning Star candlestick pattern, hinting a bounce may be ahead. A daily close abovesupport-turned-resistance at 1241.50 sees the next upside barrier at 1258.62, the 14.6% Fibonacci expansion. Alternatively, a push below inflection point support at 1217.70 exposes the 38.2% level at 1199.07.

Gold Prices Snap Losing Streak, May Extend Gains on Risk Aversion

Chart created using TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices continued to push higher, clearing resistance at 47.59 marked by the 38.2% Fibonacci retracement. From here, a daily close above the 50% level at 48.77 targets trend line support-turned-resistance at 49.29, followed by the 61.8% Fib at 49.94. Alternatively, a reversal back below 47.59 opens the door for a retest of the 23.6% expansion at 46.14.

Gold Prices Snap Losing Streak, May Extend Gains on Risk Aversion

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