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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here:
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here:
  • Beautifully put.
  • Gold prices could claw back lost ground ahead of the non-farm payrolls report for November, buoyed by a dovish FOMC, falling real yields and rising inflation expectations. Get your $XAUUSD market update from @DanielGMoss here:
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here:
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here:
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day.
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here:
  • Moving averages are extremely popular due to its easy-to-use nature and multitude of uses when trading. What are some popular moving averages and how can you use them? Find out:
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:
Gold Prices Ease Back Despite China Stock Plunge On Virus Worries

Gold Prices Ease Back Despite China Stock Plunge On Virus Worries

2020-02-03 07:01:00
David Cottle, Analyst

Gold and Crude Oil Talking Points:

  • Gold prices came down a little from last week’s highs
  • Chinese stocks fell sharply on return from their new year break
  • Crude oil edged up as markets eye possible producer action

Gold prices eased back further from last week’s four-week peaks on Monday. The coronavirus story is still driving markets, and Chinese stocks took a big hit as they returned from their extended new year break.

However other growth-correlated assets stabilized and there seems to be some hope that the disease won’t offer the sort of global economic hit associated with previous outbreaks such as 2003’s Severe Acute Respiratory Syndrome outbreak. Coronavirus seems at this stage to be far less lethal than SARS, despite its contagious nature.

The Chinese authorities have also pledged to deploy a variety of monetary tools to cushion local markets from the effects of the virus.

Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -13% 4% -10%
Weekly 2% 9% 3%
What does it mean for price action?
Get My Guide

Still, Chinese economic data showed the manufacturing sector still only just in expansion territory, with industrial profits posting their first annual fall for four years in 2019. They were down by 3.3% according to official data.

Given that this is only one of plentiful economic uncertainties only likely to be deepened by the virus’ effects, the underlying haven bid for gold seems solid enough and will probably remain so.

The next order of business for all markets is likely to be the Institute for Supply Management’s monthly snapshots of employment and manufacturing health in the US. They’re due later in Monday’s global session.

Crude Prices Rise Slightly But Remain Clearly Pressured

Crude oil prices inched back up as the Asian session went on. Fears that the virus may slow demand for crude seem to remain quite widespread but there are also various reports that the Organization of Petroleum Exporting Countries could bring its scheduled March meeting forward to this month.

Should it do so there will be inevitable suspicions that supply cuts could be deepened, lengthened or both and this may already be giving the market a measure of support. OPEC production slipped to its lowest since 2009 in January as Saudi Arabian output was cut by more than its agreed reduction and Libyan supply was halted by hostilities there.

Both US crude and the international Brent benchmark fell for a fourth straight week last week as broadening travel bans to and from China kept demand worries in focus.

Gold Technical Analysis

Prices remain clearly within the new, higher range built since last week above the previous short-term trading band.

While a durable break in either direction should give a powerful near-term lead, there seems very little appetite to push this market far beyond January’s highs, even though they remain very close to current levels.

Gold Prices Daily Chart

Still, the market remains in a clear, gradual uptrend from the lows of mid-January which is still more than $15/ounce below current levels. Even a attest of that would require an unusually large daily fall by current standards, and it’s by no means certain that support there wouldn’t hold. Below that focus would return to the current range base at $1663.31.

Crude Oil Technical Analysis

Crude Oil Prices, Daily Chart

US crude oil prices have slipped below the broad range they’d been stick at for a week or so, which was also in place back in October 2019. They’ve bounced at what were essentially 2019’s lows, with the psychologically important $50/barrel level now well within range of the bears.

However, the suspicion that OPEC could be about to act, or to bring forward action, to support prices may well make the market nervous about pushing too far below that point. Fundamental headlines are likely to drive from here.

Oil - US Crude MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -6% -1% -3%
Weekly 3% 2% 3%
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.