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
Bearish
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
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.64%, while traders in US 500 are at opposite extremes with 75.52%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5aSCLBqXc1
  • Heads Up:🇲🇽 Economic Activity YoY due at 11:00 GMT (15min) Expected: -3.5% Previous: -0.6% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇲🇽 GDP Growth Rate YoY Final due at 11:00 GMT (15min) Previous: -0.5% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Emerging market currencies haven’t been treated equally by the effects of global contagion, even if most have suffered to some degree. However withdrawal of investment flows could hit them all. Get your market update from @DavidCottleFX here:https://t.co/QzNoNYgMgP https://t.co/rIrzpGTgvn
  • Chinese President Xi says will step up preparedness for military combat
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 1.31% Oil - US Crude: 0.90% Gold: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/LKcIsCQeTg
  • #DAX30, #dowjones : la reapertura económica lidera los avances #trading https://t.co/GoI9cOuD9A
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 1.28% 🇦🇺AUD: 1.17% 🇬🇧GBP: 1.01% 🇪🇺EUR: 0.57% 🇨🇭CHF: 0.35% 🇯🇵JPY: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/eMQxa6E4eU
  • Coming up at half past the hour: my weekly webinar on market #sentiment. Do join me if you can. You can sign up here: https://www.dailyfx.com/webinars/181540619?ref-author=essex&CHID=9&QPID=917711
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: France 40: 1.67% Wall Street: 0.90% Germany 30: 0.89% US 500: 0.65% FTSE 100: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/5LHY5FmIF9
Gold Prices Up As Second Wave Covid Worries Stoke Haven Bids

Gold Prices Up As Second Wave Covid Worries Stoke Haven Bids

2020-05-12 06:00:00
David Cottle, Analyst
Share:

Gold and Crude Oil Talking Points:

  • Gold prices edged up as risk appetite took a broad knock
  • However that knock supported the US Dollar, too, capping gold’s rise.
  • Crude oil gained in hopes for further production cuts

Gold prices were a little higher in Tuesday’s Asia-Pacific trade with worries about ‘second wave’ coronavirus infections in countries which attempt to ease restrictions underlining the bid for haven assets.

However, the US Dollar was the most prominent of those assets and its own rise to two-week highs appeared to cap gold’s rise, as it often can given that gold products are generally dollar-denominated.

Confirmation that inflationary pressures are contained came from China, where consumer price inflation missed forecasts and factory gate prices rose at their slowest rate since April 2016. This may have weighed a little on gold, as asset which is often seen as an inflation hedge.

Gold BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 2% 2% 2%
Weekly 5% -3% 3%
What does it mean for price action?
Get My Guide

Crude oil prices were lower as the session got under way but they picked up as it went on, probably on news that Saudi Arabia has pledged to cut production buy a further million barrels per day. Together with reductions already in place that reportedly means that this key ‘swing producer’ will have reduced its daily output by 40% since last month.

Other producers such as Kuwait and the United Arab Emirates have also said they will further cut supply, which may reassure a market still worried that storage capacity is close to full as the market attempts to deal with the glut produced earlier in the year.

Gold Prices Technical Analysis

Gold Prices, Daily Chart

Gold prices remain confined to the broad trading range which has contained them on a daily closing basis since April 9. It’s notable that there’s been relatively little impulse to take obvious profit at these levels, even though they’re quite elevated and, while the coronavirus story remain in overall charge, it seems extremely unlikely that that will change,

By the same token, however, there’s clearly little appetite to test the range’s upper boundary at $1729.19. This hasn’t faced a serious attempt since April 23.

The market has made a modest series of lower highs since May 7, which may argue that a retry of the lower bound may be more likely in the near-term, but there’s little to suggest a durable break is imminent.

Crude Oil Prices Technical Analysis

US Crude Oil Prices, Daily Chart

Crude oil price by contrast look a little more precarious. Their nascent uptrend holds but the market has seen increasingly narrow range trade in the last week, suggesting that indecision rules overall.

That range trade now sees the uptrend itself in some jeopardy, with trendline support close to the current market in the $23.59/barrel area. The fundamental prospect of more production cuts may offer this market more support in the coming US and European sessions. However, should it fail to do so, a test of that support is likely very soon.

Oil - US Crude BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 2% -1% 1%
Weekly -5% -8% -6%
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.