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
Bullish
GBP/USD
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
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
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
Bitcoin
Bearish
More View more
Real Time News
  • The spread of #coronavirus promises a global economic hit at a time when the global economy is perhaps especially ill-equipped to deal with one. Growth-correlated assets are vulnerable. Get your market update from @DavidCottleFX here: https://t.co/0If0Jw7c2P https://t.co/mph6z70XeF
  • The $JPY continues to struggle against the US Dollar but there seems little appetite to push USD/JPY much beyond a range which has tended to reassert itself since late last year. Get your market update from @DavidCottleFX here: https://t.co/iaVfPSuXy4 https://t.co/1QPhJmYlQv
  • The #Euro may bounce after hitting the lowest level in close to three years against the US Dollar. While the broader trend points firmly lower, selling pressure may be ebbing. Get your market update from @IlyaSpivak here: https://t.co/697SQ9j5FY https://t.co/6SEvwQyod8
  • GBP/CAD has broken below the September uptrend while EUR/CAD may be ending its consecutive 12 day decline with EUR/CHF approaching key resistance as NZD/CAD aims at November lows. Get your currencies update from @ZabelinDimitri here: https://t.co/GpRB7IKhTA https://t.co/hlHlGdhkHc
  • The $GBP recoiled from chart resistance against the US Dollar, setting the stage for prices to resume a bearish trend reversal triggered mid-January. Get your market update from @IlyaSpivak here:https://t.co/lVpyZkIfJt https://t.co/9oXusxs0Kg
  • The #Euro may have more room to fall versus its major peers such as the US Dollar, Japanese Yen and British Pound. What is the technical picture of EUR/USD, EUR/JPY and EUR/GBP? Get your market update from @ddubrovskyFX here: https://t.co/M6fLA9g3BK https://t.co/HMwQgr1WP5
  • The $USD’s aggressive rise versus ASEAN currencies such as the Singapore Dollar, Indonesian Rupiah, Malaysian Ringgit and Philippine Peso prolonged. What is the technical road ahead? Find out from @ddubrovskyFX here:https://t.co/RsFptNzODf https://t.co/u8meQUSsVG
  • $AUD broke critical range support against its US counterpart, suggesting deeper losses are ahead even after prices hit an 11-year low. Get your market update from @IlyaSpivak here:https://t.co/45YpJRjDYj https://t.co/zWAzaL78Sc
  • After negotiating a series of economic and geopolitical risks in 2019, the S&P 500 rounded out the year more than 30% higher. Will the stock market crash in 2020? Find out from @PeterHanksFX here: https://t.co/8KsjB9YkBB https://t.co/4ph9bdMxz9
  • Italy reports first death from coronavirus - BBG
Gold Prices Creep Down, US-China Trade Hopes Buoy Risk Appetite

Gold Prices Creep Down, US-China Trade Hopes Buoy Risk Appetite

2019-10-22 06:07:00
David Cottle, Analyst
Share:

Gold and Crude Oil Talking Points:

  • Crude oil started quite strongly but soon slipped back
  • A US China trade deal would boost demand hopes, but for now oversupply is hurting
  • Gold prices look close to their daily chart uptrend line

Join our analysts for live, interactive coverage of all major economic data at the DailyFX Webinars. We’d love to have you along.

Crude oil prices slipped back further in Asian trade Tuesday. The snap-back in risk appetite which propelled US stocks higher in the previous session was tempered again by worries about oversupply in the energy market.

The US and China are still talking on the trade issue, even if lasting resolution remains elusive. Both sides have made encouraging noises and there is some hope that progress could be seen before mid-November’s meeting of the Asia-Pacific Economic Cooperation countries in Chile.

Chinese Vice Foreign Minister Le Yucheng said on Tuesday that some progress has been made and that, as long as there was mutual respect, no difficulty was insurmountable.

Still, Monday’s news that Russia had failed to meet production-cut targets last month continued to hang over the market, as did talks between Saudi Arabia and Kuwait to bring jointly owned oil fields back on-line.

Data this week from the Department of Energy are expected to show that US crude inventories rose for a sixth straight week, although Reuters survey evidence says the market is looking for falls in gasoline stocks.

Gold Inches Lower On Risk-Appetite Flip

Gold prices were predictably weaker as investors sought what they hope will be better returns in riskier assets. However, lurking major market worries such as Brexit will keep demand underpinned, while the prospect of lower US interest rates at the end of this month remains very much alive. Lower rates tend to increase the appeal of gold, which has no yield itself.

Crude Oil Technical Analysis

While clearly still under medium-term pressure and some way below mid-September’s highs, US crude oil prices have managed a shallow uptrend since the start of this month.

US Crude Oil, Daily Chart

This trend is now in the balance, however, as those oversupply worries persist. A daily close below the line will, if sustained, put October 3’s low of $51.04/barrel back in play, possibly quite soon. Bulls have a lot of work to do but their first target will probably resistance at October 11’s high of $55.07.

Gold Technical Analysis

With clear exceptions daily gold prices have been confined to quite narrow daily ranges in the past month. This can attest to an uncertain market or a period of consolidation. Uncertainty seems only too plausible given the often-contradictory headline-driven trading impulses provided by both US/China trade story and Brexit.

Spot Gold, Daily Chart

Whatever the reason behind this narrow trade, it seems to be taking prices ever closer toward their own uptrend line. Sharper falls may be seen below this but in such a risk driven market buyers are likely to re-emerge quite quickly around this month’s low

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.