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.

Free Trading Guides
EUR/USD
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
Mixed
USD/JPY
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
Gold
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
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.78%, while traders in US 500 are at opposite extremes with 68.80%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/LVxJXK0YNh
  • Heads Up:🇪🇺 EUR German IFO Current Assessment (FEB) due at 09:00 GMT (15min), Actual: N/A Expected: 98.6 Previous: 99.1 https://www.dailyfx.com/economic-calendar#2020-02-24
  • Heads Up:🇪🇺 EUR German IFO Expectations (FEB) due at 09:00 GMT (15min), Actual: N/A Expected: 92.1 Previous: 92.9 https://www.dailyfx.com/economic-calendar#2020-02-24
  • Heads Up:🇪🇺 EUR German IFO Business Climate (FEB) due at 09:00 GMT (15min), Actual: N/A Expected: 95.3 Previous: 95.9 https://www.dailyfx.com/economic-calendar#2020-02-24
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Gold: 2.37% Silver: 1.79% Oil - US Crude: -3.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/qGErDKxU6q
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.08% 🇨🇭CHF: -0.19% 🇬🇧GBP: -0.23% 🇨🇦CAD: -0.44% 🇦🇺AUD: -0.52% 🇳🇿NZD: -0.66% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/UZkhKdEaS4
  • RT @TimBukOne: @ShaunMurison_IG Update: Now with latest real-time price added - lowest levels since 2003 using inflation adjusted, constant…
  • LIVE NOW: Join DailyFX Market Analyst @DavidCottleFX for a look ahead at the major economic data which will drive Asia Pacific markets in the coming seven days. https://www.dailyfx.com/webinars/985612483
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/h72ZbD8gUS
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: US 500: -1.63% Wall Street: -1.63% Germany 30: -2.26% France 40: -2.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/APzhDnjKfP
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
Share:

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.

Gold BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 18% -10% 7%
Weekly 19% -1% 11%
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 BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 2% 4% 3%
Weekly -20% 6% -16%
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

News & Analysis at your fingertips.