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
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Breaking news

Federal Reserve Announce $2.3 Trillion in Loans to Support Economy

Real Time News
  • OPEC+ outline deal is for 10 million bpd cut to production: Delegates - BBG
  • Bloomberg headline quoting delegates suggests OPEC+ outlining deal for 10mln bpd oil production cut
  • Natural Gas Price Chart Exposes Bearish Signals - Nat Gas Forecast More details in the link below: https://www.dailyfx.com/forex/technical/article/special_report/2020/04/09/Natural-Gas-Price-Chart-Exposes-Bearish-Signals-Nat-Gas-Forecast-MK.html?CHID=9&QPID=917714 https://t.co/Gc2vdB14ha
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 1.24% 🇳🇿NZD: 1.01% 🇪🇺EUR: 0.66% 🇨🇦CAD: 0.55% 🇨🇭CHF: 0.50% 🇯🇵JPY: 0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ezlPWmoQsv
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 2.32% Wall Street: 2.04% US 500: 1.98% France 40: 1.72% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/oxdKK48tbV
  • New York Fed Purchases $14 B in Treasury Coupons
  • Democrats in the Senate block $250 billion small business stimulus plan $SPX
  • Oil on a roll...Brent =6.5% at $36.50/bbl...#oott #brent @DailyFX https://t.co/PzgnGu27p6
  • RT @lampidicsparrow: 20mbpd https://t.co/M05rMBbPAK
  • Hey traders! We are yet again back with a daily market update with @DailyFX Chief Strategist, @JohnKicklighter he answers if we are heading into a recession and what are the key market 📈 information to look out for today and the weekend. https://t.co/kYxCym8rxf
Gold Slips Despite Stocks' Virus Hit As Market Hopes For Wall St Bounce

Gold Slips Despite Stocks' Virus Hit As Market Hopes For Wall St Bounce

2020-02-25 03:00:00
David Cottle, Analyst
Share:

Gold and Crude Oil Talking Points:

Gold prices were lower on Wednesday in Asia despite the previous session’s huge Wall Street losses, incurred in turn as US investors seemed finally to accept that the coronavirus’ spread will exert major economic drag. It seems the market expects risk appetite to rebound, with some impulse to take profit on gold’s impressive gains evident.

Still, regional stock markets were mostly lower, with the Nikkei plunging on return from Monday’s holiday. South Korea’s Kospi snapped back from its own virus-related losses. However, the revival of both US and European stock futures saw gold retreat from its session peaks, even though the market clearly remains well supported in this nervy environment.

Headlines permitting the market will look ahead to Tuesday’s US consumer confidence data. With China mired and Europe sluggish, the US consumer looms large as a possible growth driver. The index is expected to have ticked up modestly in February, to 132 from last month’s 131.6.

Gold MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 5% 3% 5%
Weekly 6% 12% 7%
What does it mean for price action?
Get My Guide

Crude oil prices were higher, with the market steadying after Monday’s sharp falls. Investors remain weighed down by concerns that the coronavirus will see further falls in demand for an energy market already well supplied, with traditional producers apparently in no hurry to deepen or lengthen production cuts.

US oil inventory is expected to have risen for a fifth straight week according to a Reuters poll.

Oil - US Crude MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -1% -11% -4%
Weekly -21% -12% -19%
What does it mean for price action?
Get My Guide

Gold Technical Analysis

Gold Prices, Daily Chart

Prices are heading back toward near-term support at $1631.66/ounce. That’s the first, 23.6% Fibonacci retracement of the rise from November’s lows up to this week’s top. However, the market has been climbing very steeply since mid-February, perhaps getting overextended in the process.

The market will probably still find clear support in the range between $1595.24 and $1538.82. That band was traded for much of 2020, before the more recent, sharper rises were seen. It also comes in between the second and fifth Fibonacci retracement of the rise. Given the fundamental picture it seems highly unlikely that gold will slide as far as that range base, but some consolidation in its upper reaches looks quite probable.

Crude Oil Technical Analysis

US Crude Oil Prices, Daily Chart

Prices seem to have topped out once again at January 28’s peak of $54.09/barrel, with the latest falls large enough to break late February’s uptrend channel to the downside. Support awaits at early-February’s notable low and is likely to beckon unless the bulls can gird themselves to sustainably top that key resistance point.

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.