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. See our updated Privacy Policy here.

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
Subscribe
Please try again
More View more
Real Time News
  • I don't think you could make a chart more technically provocative for me than what the $SPY S&P 500 ETF is offering up. That said, doesn't have to break and follow through has been notoriously scarce on the downside https://t.co/vqrlhu7AwC
  • #Nasdaq Tanks on Rising U.S. Yields, ARKK Appears to Confirm a Double Top Pattern #trading $ARKK $NDX https://t.co/lNlEsJnEyk
  • #Nasdaq Tanks on Rising U.S. Yields, ARKK Appears to Confirm Double Top Patter #trading $ARKK $NDX https://t.co/lNlEsJnEyk
  • I'm all for the diversify, but we are missing some steps between A and Z here...
  • Seeing articles show up in my search results that are obvious plants from traditional investment firms trying to get the new generation to open the traditional and passive account types they operate https://t.co/xGoaGqHpyg
  • The options market can be an excellent place to express trading ideas, as it presents numerous ways to structure trades with various risk profiles. Learn to trade the Options market with DailyFX. Download your free guide here! https://t.co/B78Mn99fU0 https://t.co/EpUMWMSGWO
  • On this week's Macro Setup @HathornSabin discusses with @GuyAdami & @RiskReversal the September stock swoon, rate rampage, and dollar dominance. Check it out! https://t.co/k68k2UP7rr https://t.co/0kGvdXWrDK
  • Fed's Bostic: - Any decision on a central bank digital currency is a long way off - Taper is warranted if current trends continue
  • Heads Up:🇺🇸 Fed Bostic Speech due at 19:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-28
  • Canadian #Dollar Outlook: $USDCAD Snaps Five-Days Down- Reversal Risk - https://t.co/O2MYTxe7bE https://t.co/tqIZUjE7pZ
Crude Oil Holds Gains On Hopes Huge Stockpiles Can Be Run Down

Crude Oil Holds Gains On Hopes Huge Stockpiles Can Be Run Down

David Cottle, Analyst

Crude Oil and Gold Talking Points:

  • Crude oil prices had a volatile Asian Friday but held on to the previous session’s gains
  • Chinese industrial production surged ahead of expectations
  • Gold prices were a little higher as investors eyed strained US-China ties

Crude oil prices slipped then rose again on Friday in Asia, but retained most of the gains made in the previous session even if the market is poised more broadly between Covid’s demand destruction and hopes that production cuts will see prices rise.

The market is still seeing some tailwind from this week’s International Energy Agency prediction that elevated crude stockpiles would start to fall as the year goes on.

News that China’s industrial output came back very strongly last month may have supported the market, although the prospect of ‘second wave’ infections among reopening economies is clearly keeping a lid on any exuberance.

Meanwhile gold prices were a little higher, holding on to the gains made in the previous session.

News that US President Donald Trump is open to talking about another possible stimulus bill gave the market a lift. This prospect is apt to underpin gold prices as they are often seen as a hedge against both inflation and monetary debasement.

In its more traditional geopolitical haven investment role gold got a boost from signs that the key international relationship between China and the US was weakening further. Trump said he had no interest in talks with Chinese leader Xi Jinping at this stage, even hinting that he could completely cut ties over China’s handling of Covid contagion.

The remainder of the global session offers many likely points of market interest, including German and Eurozone growth data and US industrial production, retail sales and consumer sentiment numbers. None is expected to make especially happy reading.

Crude Oil Technical Analysis

US Crude Oil Prices, Daily Chart

US crude oil prices’ uptrend line from late April remains in force having just survived another test. Prices have moved back above support at $27.28, April 9’s closing low. Psychological resistance at $30 will be well within the likely trading band which would be established should the market manage to remain above that level. Above that point resistance lies at the last notable peak, the same day’s intraday top of $31.58.

Gold Technical Analysis

Gold Prices, Daily Chart

Gold prices have returned to the highs of October 2012 with this week’s strong gains. The $1797.03 level of November that same year now forms resistance, with the all-time highs now back in place. Prices sharp climb this year is hardly surprising given the fundamental backdrop, but all the same some consolidation is probable in the near future.

That said the underlying bid for gold remains extremely strong and any slides back below the $1700 point are likely to attract buyers.

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