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
Mixed
Gold
Bearish
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
Mixed
More View more
Real Time News
  • Bank of Korea's Lee: Two members opposed today's decision to hold rates -BBG
  • The #Euro may be close to resuming the downtrend against the US Dollar after managing a shallow recovery from support just below the 1.08 figure. Get your $EUR market update from @IlyaSpivak here: https://t.co/WJCO0fVagR https://t.co/ytCj6HqOVE
  • Bank of Korea's Governor Lee: Coronavirus outbreak affecting consumption and exports. Latest GDP view is based on virus peaking in March. Negative virus impact likely to be concentrated in 1Q -BBG
  • #Brazil benchmark equity index #Ibovespa suffered its biggest one-day decline since May 2017 and broke a 2-year uptrend after news broke that Latin America's largest country reported its first case of #Covid_19. It may be a painful session ahead when local markets open. https://t.co/YFLJD1gCVs
  • Bank of Japan's Kataoka: It is appropriate for the central bank to lower interest rates, BoJ should strengthen forward guidance. Coordination with fiscal policy very important -BBG
  • Looking at my majors-based #Yen index, #JPY could have quite the room to rally on average if there is a deeper turn in equities. The currency has still largely been consolidating since December on average and a break above the January and February highs could mark a bullish trend https://t.co/fIA4BeTmyf
  • The $JPY has lost out to a broadly resurgent US Dollar, with a clearly dwindling band of Yen bulls left to hope that the most recent rise has become overextended. Get your market update from @DavidCottleFX here:https://t.co/7Ndm5jiOi7 https://t.co/nP50B7d4yi
  • The double-edged sword of globalization: Pro: Hyper interconnectedness means everything is transmitted far more quickly. Con: Hyper interconnectedness means everything is transmitted far more quickly.
  • China reports 433 additional #coronavirus cases on February 26 which brings total to 78,497. 29 deaths were also reported bringing total fatalities to 2,744 -BBG
  • Bank of Korea says it will continue to monitor the #COVID19 outbreak (BBG)
Gold Prices Hold Up As Markets Eye Fed, Oil Prices Pare Gains

Gold Prices Hold Up As Markets Eye Fed, Oil Prices Pare Gains

2019-10-24 05:42:00
David Cottle, Analyst
Share:

Gold and Crude Oil Talking Points:

  • Gold prices lacked further impetus but remained well supported by a variety of market concerns
  • Oil prices were boosted by a surprise US inventory drawdown, but end-demand worries still weigh heavily
  • It may take further production cuts to produce a durable price rise

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

Gold prices held above the $1490 handle through Asia’s Thursday session with the market deriving support from the usual duo of economic uncertainties – US/China trade and Brexit.

Beijing and Washington remain in touch on the trade issue but progress toward a lasting settlement is glacial. The US corporate earnings season has already provided plenty of evidence that weakening China sales are hitting bellwether firms. There’s regional evidence too. South Korea’s growth fell in the third quarter, with sluggish global trade cited.

European Union leaders appear ready to grant yet another Brexit delay, but the situation remains fluid and the UK may see another election before that period ends.

These factors are supporting gold, as is the prospect of lower interest rates from the Federal Reserve, expected when it sets policy on October 30. A quarter-point reduction is now regarded as virtually certain.

Crude Oil Prices Backtrack After Surprise Inventory Slide

Crude oil prices slipped back a little as worries about real demand reasserted themselves. They rose in US hours Wednesday on news of a surprise inventory drawdown. The Energy Informaiton Administration said that inventories fell by 1.7 million barrels last week, when analysts had looked for a build of over 2 million.

The result came in contrast to earlier data from the American Petroleum Institute which had showed an increase of over 4 million barrels.

Gold Technical Analysis

Spot gold remains close to its September peaks on the weekly chart and they in turn are the highest point reached since mid-April.

Spot Gold, Weekly Chart

However, the gradual downtrend seen since then remains very much in command. The coming weekly and monthly closing levels are likely to prove instructive in relation to it.

Crude Oil Technical Analysis

US Crude’s most recent upward spike has taken it above the top of its most recent daily-chart trading range.

US Crude Oil, Daily Chart.

However, this break can hardly be regarded as conclusive yet, with its durability into the week’s end again something to watch. While both the macroeconomic and corporate data are attesting so loudly to weakening global demand, it is hard to see prices staging any significant march higher. Of course production cuts may do the trick, and they may come when OPEC meets in December.

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.