Skip to Content
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.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Crude Oil Prices May Turn Lower as Covid-19 Fears Reemerge

Crude Oil Prices May Turn Lower as Covid-19 Fears Reemerge

What's on this page

CRUDE OIL & GOLD TALKING POINTS:

Crude oil prices are back on the defensive after struggling to capitalize on yesterday’s China-driven risk rally. The WTI benchmark is proving to be more responsive when sentiment flips to a risk-off setting: S&P 500 futures are down alongside Asia-Pacific bourses and the cyclical Australian and New Zealand Dollars.

Gold prices are struggling for direction as the US Dollar and Treasury yields continue to diverge. Haven demand has lifted the Greenback – cooling demand for anti-fiat hedges – but lower bond rates are helping to limit downside progress by boosting the relative appeal of non-interest-bearing alternatives.

Broader markets turned defensive despite another buoyant day for mainland China stocks. Beijing’s encouragement may have sustained the local speculative drive but investors elsewhere seem perturbed as Melbourne brings back Covid-19 lockdown measures and parts of the US struggle with a second virus wave.

More of the same looks likely ahead. A quiet day on the economic data front looks likely to keep sentiment trends in the spotlight. A risk-off tilt looks likely, with futures tracking US and European equity benchmarks pointing convincingly lower ahead of the cash trade open.

Gold Forecast
Gold Forecast
Recommended by Ilya Spivak
Get Your Free Gold Forecast
Get My Guide

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices are still struggling for direction below resistance in the 42.40-43.88 area. Negative RSI divergence underscores the loss of upside momentum but it is unclear so far whether this speaks to consolidation or reversal. A daily close below 34.78 eyes the 27.40-29.11 area thereafter. Alternatively, breaking resistance probably puts the $50/bbl figure in the spotlight.

Crude oil price chart - daily

Crude oil price chart created using TradingView

GOLD TECHNICAL ANALYSIS

Gold prices remain pinned below the 38.2% Fibonacci expansion at 1789.78. Support is marked at 1747.74, with a break below that on a daily closing basis likely to expose the 1679.81 inflection point. Alternatively, a breach of resistance looks to target the 50% Fib at 1827.82 next.

Gold price chart - daily

Gold price chart created using TradingView

Gold Forecast
Gold Forecast
Recommended by Ilya Spivak
Get Your Free Gold Forecast
Get My Guide

COMMODITY TRADING RESOURCES

--- Written by Ilya Spivak, Head APAC Strategist for DailyFX

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES