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
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
Oil - US Crude
Bullish
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • 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/td5WA4hCZC https://t.co/3qXauAsm2Q
  • The Dow Jones and S&P 500 nervously face the earnings season as coronavirus deaths could reimpose lockdowns. The DAX 30 eyes an EU rescue package as the FTSE 100 awaits GDP data. Get your #equities update from @ddubrovskyFX here: https://t.co/A0k6JMMBOg https://t.co/iihbEYsfgi
  • It was a surprisingly quiet week in oil, with the net of this week’s price action showing a doji. But a longer-term formation has built that may open the door to that next trend. Get your #commodities update from @JStanleyFX here: https://t.co/zz6M2ce55V https://t.co/UxlbpgLBkq
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/beKjEODs2y
  • RT @RichDvorakFX: @Investingcom Seems to me like investors ‘high’ on central bank liquidity are fiending for more and staring down the edge…
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkd4B0k https://t.co/b8RNJQKE1m
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/yXomAftdv8 https://t.co/wOQAHZVnxB
  • Forex trading, which is the act of exchanging fiat currencies, is thought to be centuries old – dating back to the Babylonian period. Learn about the history of Forex here:https://t.co/ePTJlbUP7c https://t.co/WS2LkCt9gX
  • Two major events will dominate #Euro trading in the coming week: an #ECB meeting on Eurozone monetary policy, followed by an #EU summit to reach agreement on a recovery fund. Get your #currencies update from @MartinSEssex here: https://t.co/wnXjTDizMv https://t.co/tmxDfkgmSv
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/UQRaKusFP7
Gold Prices May Bounce as Markets Eye ECB Meeting, US CPI Data

Gold Prices May Bounce as Markets Eye ECB Meeting, US CPI Data

2019-09-10 05:00:00
Ilya Spivak, Head Strategist, APAC
Share:

GOLD & CRUDE OIL TALKING POINTS:

  • Gold prices drop to four-week low after near-term support break
  • Crude oil prices rise alongside stocks amid risk appetite recovery
  • Commodities may retrace with ECB meeting, US CPI data eyed

Gold prices continue to track lower inversely of a recovery in bond yields. The move seems to reflect ebbing political risk in Italy, Hong Kong and the UK as well as hopes for progress in another round of US-China trade negotiations. Higher rates tarnish the appeal of non-interest-bearing assets, like the yellow metal.

Meanwhile, cycle-sensitive crude oil prices have taken the opposite side of the same narrative. The same pro-risk push across global financial markets that has weighed on gold (as well as anti-risk currencies like the Yen and US Dollar) seems to have driven the WTI benchmark upward alongside stocks.

GOLD MAY REBOUND AS CRUDE OIL BACKTRACKS BEFORE ECB, US CPI

A relatively quiet day on the economic data docket offers relatively few roadblocks for established momentum, but market cheer may ebb all the same as traders show restraint ahead of Thursday’s heavy-duty event risk. The ECB rate decision and US CPI data are due.

The Eurozone monetary authority is widely expected to boost stimulus. That will make it hard for President Mario Draghi and company to delivery a sentiment-boosting dovish surprise. Meanwhile, core inflation in the US is expected to accelerate, which may be seen as reducing scope Fed rate cuts.

On balance, this means that market participants might be reluctant to commit to big risk-on bets, with some that have already participated in the week-long sentiment recovery even moved to reduce exposure. This could nudge gold upward even as it pulls down on crude oil in the near term.

Get our free guide to help build confidence in your gold and crude oil trading strategy!

GOLD TECHNICAL ANALYSIS

Gold prices continue to push lower having established a swing top below resistance at 1563.00 – a weekly chart inflation point – as expected. Initial support is at 1480.00, the August low, with a daily close below that setting the stage for a test of the 1437.70-52.95 area.

Gold price chart - daily

Gold price chart created using TradingView

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices broke resistance capping them since late April, opening the door to challenge the 60.04-84 area. For sellers to reclaim the initiative, a daily close below upward-sloping support set from the August 7 low – now at 54.57 – seems necessary. Downside hurdles at 52.96 and near the 50.00 mark follow.

Crude oil price chart - daily

Crude oil price chart created using TradingView

COMMODITY TRADING RESOURCES

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

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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

DISCLOSURES

News & Analysis at your fingertips.