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
Wall Street
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
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
Mixed
More View more
Real Time News
  • Heads Up:🇯🇵 Housing Starts YoY (SEP) due at 05:00 GMT (15min) Expected: -8.6% Previous: -9.1% https://www.dailyfx.com/economic-calendar#2020-10-30
  • NZD/USD appears to have reversed course ahead of the September high (0.6798) as the wave of lockdowns across Europe drags on risk appetite. Get your $NZDUSD market update from @DavidJSong here: https://t.co/xQ7sqsF0w6 https://t.co/j3glkif7tq
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.20%, while traders in NZD/USD are at opposite extremes with 65.44%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/pw6qIORHUJ
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.30% 🇯🇵JPY: 0.20% 🇨🇦CAD: 0.19% 🇨🇭CHF: 0.11% 🇳🇿NZD: 0.07% 🇬🇧GBP: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/BTP4ksGwly
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.42% Germany 30: 0.08% France 40: 0.04% Wall Street: -0.60% US 500: -0.73% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/m2KKGAYVla
  • Heads Up:🇸🇬 Unemployment Rate Prel (Q3) due at 04:00 GMT (15min) Previous: 2.8% https://www.dailyfx.com/economic-calendar#2020-10-30
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/LjEjTexrCg https://t.co/lELbFbVAAO
  • Market Snapshot $USD and $JPY drifting lower against their major counterparts $AUDUSD and $EURUSD pushing to fresh session-highs #Gold and #crudeoil prices moving higher #ASX200 and #SP500 futures drifting to session-lows
  • United States records over 86,000 new cases of Covid-19, setting a new daily record - BBG $USD $SPX $DJIA
  • Chinese Science and Technology Minister Wang: Self-reliance doesn't contradict opening up China hopes to both learn from the world and share its innovations - BBG $USDCNH
Gold Prices Higher on Virus Fears Despite Asian Stock Gains

Gold Prices Higher on Virus Fears Despite Asian Stock Gains

2020-02-05 07:00:00
David Cottle, Analyst
Share:

Gold and Crude Oil Talking Points:

  • Gold prices rose once more, taking back some of this week’s lost ground
  • Coronavirus headlines continue to drive this market and others
  • Crude oil markets seem to be more certain that production cuts are coming

Gold prices were higher in Wednesday’s Asia Pacific trade with the coronavirus once again driving the action as China’s death toll neared 500 people.

The outbreak also saw its first death in Hong Kong, with mainland China now reporting 479 fatalities overall.

Top White House economic adviser Larry Kudlow said on Tuesday that the virus would likely see any trade benefits from last year’s trade deal with Beijing postponed. That said he doubted that the outbreak would mean economic disaster for the US.

While counter-cyclicals such as gold were once again well-supported, even though regional stock markets were all well into the green thanks largely to hopes of increased Chinese stimulus aimed at countering the virus’ economic effects.

There are plenty of potential risk events for the gold market as Tuesday goes on. European Central Bank President Christine Lagarde will speak in Paris, while various Purchasing Managers Index data are on tap from around Europe and the US.

Gold MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -2% 5% -1%
Weekly 0% -2% 0%
What does it mean for price action?
Get My Guide

Crude Oil Market Eyes Possible ‘OPEC Plus’ Cuts

Crude oil prices were higher as the market seems increasingly to expect that producers will take action to try and stem this year’s relentless downward pressure.

Technical specialists from the Organization of Petroleum Exporting Countries and associate nations in the so called ‘OPEC plus’ group are meeting in Vienna this week. They’re reportedly weighing further, longer output reductions in response to falling prices, and moving a planned policy get-together to this month rather than leaving it until March.

In the meantime, market focus will probably be on US inventory data from the Department of Energy due later in the global session. Last week’s shock stock rebuild hit the market but this is a volatile series in any case.

Oil - US Crude MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -3% 8% 1%
Weekly 48% -23% 15%
What does it mean for price action?
Get My Guide

Gold Technical Analysis

Prices have fallen below both their previous daily chart range and the uptrend in place since early January, although so far there’s only been one daily close below the line.

Gold Prices, Daily Chart

However, the previous, better established range is clearly holding and can probably be expected to for as long as the market’s haven bid is underwritten by coronavirus headlines. The range base is some way below the market at $1538.37/ounce and that doesn’t look in imminent danger of a test. Indeed, if Tuesday’s gains can be built upon then the market might regain its former trading band. A break of $1589.27 confirmed by a daily close would see prices back up there.

Crude Oil Technical Analysis

US crude oil prices remain trapped within a broad band formed by the fourth and fifth Fibonacci retracement levels of their rise up from the lows of December 2018 to the highs of April last year, both of which still stand unbeaten since.

Crude Oil Prices, Daily Chart

It seems highly likely that there will be increasing focus on OPEC production cuts for as long as the market remains close to the psychologically important $50 level. With that in mind the broad range seems set to contain the bears, even if there’s little fundamental sign that much of this year’s falls will be reclaimed anytime soon.

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