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
Bearish
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
Wall Street
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
Gold
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
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • France preparing to announce stay at home order this week, according to industry sources $EUR
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: -1.46% Silver: -3.96% Oil - US Crude: -5.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/BW1IQulbTf
  • Heads Up:🇨🇦 BoC Monetary Policy Report due at 14:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-10-28
  • Heads Up:🇨🇦 BoC Interest Rate Decision due at 14:00 GMT (15min) Expected: 0.25% Previous: 0.25% https://www.dailyfx.com/economic-calendar#2020-10-28
  • The Dow ($DJIA) has opened to the biggest gap lower on the open since June 11th. It has taken out the 100-day moving average in turn https://t.co/VtCyT3ZpEh
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: -1.83% Wall Street: -2.14% FTSE 100: -2.40% France 40: -3.51% Germany 30: -3.91% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/u2yHbdPnew
  • German lockdown planned to start on November 2nd, according to the Bild $EUR
  • The market’s preferred ‘fear indicator’ shows a persistent uncertainty around the near future. What can our current conditions and history tell us what to expect from the VIX through the final two months of the year? Find out from @RichDvorakFX here:https://t.co/jlhcFhH4sI https://t.co/nBjbCIRyJO
  • 🇺🇸 Goods Trade Balance Adv (SEP) Actual: $-79.37B Previous: $-83.11B https://www.dailyfx.com/economic-calendar#2020-10-28
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.50%, while traders in NZD/USD are at opposite extremes with 74.49%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/jp99tl11Eb
Gold Prices Slip As Risk Appetite Holds Up Despite Coronavirus Fears

Gold Prices Slip As Risk Appetite Holds Up Despite Coronavirus Fears

2020-01-22 07:15:00
David Cottle, Analyst
Share:

Gold and Crude Oil Talking Points:

  • Gold prices were lower despite market worries about coronavirus and inevitable comparison with the SARS outbreak of 2003
  • A stronger US Dollar and news of weaker Chinese demand weighed on the market
  • Crude oil prices slipped too, on prognoses of plentiful supply even given Libyan production outages

Gold prices edged lower on Wednesday in a subdued Asia Pacific market session, but risk appetite remains quite fragile with investors keeping a close eye on headlines related to the spread of the coronavirus as the Chinese New Year travel season picks up and millions travel to, from and within the country where the virus first emerged.

Public health officials in China have reportedly confirmed more than 400 cases of the illness, evoking unavoidable memories of 2003’s outbreak of Severe Acute Respiratory Syndrome and the economic havoc that caused. Coronavirus cases are now confirmed in South Korea, Japan, Thailand, Taiwan and the United States.

Still, despite this news Asia Pacific stock markets managed to eke out modest gains, with this solid risk sentiment and a stronger Dollar both conspiring to weigh on gold prices. China’s gold consumption was reported to have fallen in 2019 for the first time in three years as high prices and a general economic slowdown hit private investor appetite.

Prospect of Heavy Supply Caps Crude Oil

Crude oil prices were lower too, with declines accelerating after the International Energy Agency forecast a global market surplus in the year’s first half despite ongoing output cuts from traditional producers. This helped to allay concerns about any supply constraints stemming from loss of production to conflict in Libya.

The rest of the global session offers few major economic pointers although Canadian inflation data and the Bank of Canada’s January monetary policy decision will keep markets interested. Base rates are expected to stay at 1.75%

Gold MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -7% -6% -7%
Weekly 0% -22% -5%
What does it mean for price action?
Get My Guide

Gold Technical Analysis

Prices remain within the daily-chart range which has bounded trade since January 8 when prices retreated from the spike made in the aftermath of this month’s lethal US airstrike on Iranian General Quassem Suleimani.

Gold Prices, Daily Chart

The break of this range is likely to provide the market with a significant directional clue. However it remains notable that prices remain close to their recent highs, not previously been seen since May 2013, despite the relative strength of risk appetite seen this year.

Crude Oil Technical Analysis

Crude oil prices have at last slipped below the broad band of support which the bulls have defended on a daily closing bases since early January.

Crude Oil Prices, Daily Chart

It comes in between the third and fourth Fibonacci retracements of the rise from October’s lows to this month’s peaks and, although it has yet to give way conclusively, the bears don’t seem to be giving up in their attempts to break back into it. With that in mind the closing levels seen for the remainder of this week could be instructive.

Oil - US Crude MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -1% 8% 2%
Weekly 54% -29% 9%
What does it mean for price action?
Get My Guide

Commodity Trading Resources

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES