Tuesday, January 19

Commodities

Crude Oil Prices In Focus Amid Fears of Falling Demand
Commodities

Crude Oil Prices In Focus Amid Fears of Falling Demand

Oil Price Forecast:US Crude Oil inventories fall by 3.2 million barrels Price action stalls amid fresh lockdown restrictions, sparking concerns around future demand CCI harbors on overbought territoryGlobal lockdown restrictions continue to weigh on crude oil as a surge in Covid-19 cases have resulted in fresh lockdown measures throughout Europe and China, placing pressure on the demand for Oil and other commodities.Visit the DailyFX Educational Center to discover why news events are Key to Forex Fundamental AnalysisMeanwhile, according to this week’s EIA (Energy Information Administration) report, US crude inventories fell by 3.2 million barrels in the week ending 8 Jan 2020, concluding the fifth consecutive week of drawdowns in stockpiles. Despite the negative corr...
Gold Price Prediction: XAU breakdown to $1,800 seems imminent
Commodities

Gold Price Prediction: XAU breakdown to $1,800 seems imminent

Gold futures market suffered for another week as the US dollar gained. XAU/USD might revisit $1,800 if the short term support at $1,820 fails to hold in the coming week.Gold experienced intense selling pressure in the concluded trading week. The precious metal was not able to pick up momentum following the consistent growth of the US dollar. Attempts to recover failed multiple times for the dollar-dominated asset. Meanwhile, the strongest currency in the world posted gains for the second week in a row.The 4-hour chart also shows XAU/USD upside was limited by the 200 Simple Moving Average around $1,860. As selling activities surged, gold explored price levels toward $1,820. However, it closed the week at $1,825 amid a build-up of bearish pressure.If technical levels remain t...
WTI drops briefly back below $52.00 amid risk off market conditions
Commodities

WTI drops briefly back below $52.00 amid risk off market conditions

WTI has been on the back foot on Friday dropping from the high $53.80s to around $52.00. Demand concerns amid further lockdown restrictions in Europe, coupled with other global risk-off factors have weighed.The front-month futures contract for the American benchmark for sweet light crude oil, West Texas Intermediary (WTI), has been on the back foot on the final trading day of the week. In early Friday Asia Pacific trade, WTI futures climbed as high as $53.81, not even 10 cents from the 11-month highs set earlier in the week at $53.90, but have seen substantial downside since then (in fitting with other risk assets). WTI has dropped all the way back to the $52.00 level and printed lows at $51.82. At present, front-month WTI futures trade around $1.50 or close to 3% lower on th...
Gold consolidating above $1850 at tip of ascending triangle
Commodities

Gold consolidating above $1850 at tip of ascending triangle

Gold is seeing consolidative trade on Wednesday ahead of the unveiling Biden’s stimulus plan and Fed Chair Powell on Thursday. The precious metal formed an ascending triangle price structure that could be subject to a bullish breakout.It has broadly been a day of consolidation for spot gold prices (XAU/USD). The yellow metal trades with modest gains of just under $4 on the day or about 0.2% and sits currently sits just to the south of the $1860 mark, having twice rebounded from tests of the $1850 mark to the downside this session.ConsolidationThe market’s broader appetite for risk has been difficult to decipher, with US stocks broadly a little higher, seemingly aided by a fall retracement lower in US bond yields. Yields have moved lower in wake of largely dovish commentary ...
Gold $3,000?
Commodities

Gold $3,000?

Gold is perhaps the world’s oldest store of value still in widespread use. Yet it is impossible to determine its intrinsic value. Why? Since gold doesn’t generate any income, it has no cash-flow stream to discount. In this respect, it is similar to sovereign debt in developed countries today. And just as gold was used to create money in earlier eras, sovereign debt serves the same purpose today.The price of gold (XAU) and the US dollar index (DXY) tend to have a negative correlation while the price of gold and the money supply (M2/GDP) have a positive one. This largely held true from 2000 to 2020 and reflects how US dollars and gold have served as central banks’ official reserves and how in the Bretton Woods system, gold was denominated in US dollars.When US monetary policy loosens and...
Bitcoin Crosses $41.9K as Ether Futures Interest Grows 85% So Far in 2021
Commodities, Crypto News

Bitcoin Crosses $41.9K as Ether Futures Interest Grows 85% So Far in 2021

Bitcoin hit a fresh all-time high Friday as investors continued to scoop up some of its limited supply. The ether futures market also hit records as derivatives traders check out the second-largest cryptocurrency by market capitalization.Bitcoin (BTC) trading around $39,304 as of 21:00 UTC (4 p.m. ET). Gaining 0.64% over the previous 24 hours. Bitcoin’s 24-hour range: $36,579-$41,962 (CoinDesk 20) BTC below the 10-hour but above the 50-hour moving average on the hourly chart, a sideways signal for market technicians.Bitcoin trading on Bitstamp since Jan. 5.New all-time highs are again the topic of the day on Friday, the third straight day the price of bitcoin hit a record level. Around 15:00 UTC (10 a.m. ET), the price of bitcoin changed hands at $41,962, acc...
Oil Price Approaches February 2020 High Following OPEC Meeting
Commodities

Oil Price Approaches February 2020 High Following OPEC Meeting

Oil Price Talking PointsThe price of oil extends the advance following the Organization of the Petroleum Exporting Countries (OPEC) meeting amid the ongoing slack in US output, and looming developments in the Relative Strength Index (RSI) may show the bullish momentum gathering pace as the indicator flirts with overbought territory.Oil Price Approaches February 2020 High Following OPEC MeetingThe price of oil trades to a fresh weekly high ($51.28) as it carves a series of higher highs and lows, and crude may continue to approach the February 2020 high ($54.66) as OPEC and its allies appear to be on track to regulate the energy market throughout 2021.Following the 13th OPEC and non-OPEC Ministerial Meeting (ONOMM), Saudi Arabia announced plans to reduce oil production by 1 million b...
Bitcoin Breaks $34K as Ether Futures Interest Jumps $350M in a Day
Commodities, Crypto News

Bitcoin Breaks $34K as Ether Futures Interest Jumps $350M in a Day

Higher-than-average spot volume, even for the past month, is helping push bitcoin’s price upward at a time when traders are plowing into ether futures at a quick pace to open 2021.Bitcoin (BTC) trading around $33,987 as of 21:00 UTC (4 p.m. ET). Gaining 8.9% over the previous 24 hours. Bitcoin’s 24-hour range: $29,986-$34,220 (CoinDesk 20) BTC well above its 10-hour and 50-hour moving averages on the hourly chart, a bullish signal for market technicians.Bitcoin trading on Bitstamp since Jan. 2.Source: TradingViewBitcoin’s price made gains Tuesday after a four-hour sell-off was reversed around 06:00 UTC (1 a.m. ET). That led to a steady climb to as high as $34,220 as of press time.“Bitcoin has extended its already-steep uptrend to new all-time highs,”...
Gold Price Analysis: XAU/USD bears waiting to pounce
Commodities

Gold Price Analysis: XAU/USD bears waiting to pounce

Gold meets a critical resistance area for a compelling case to the downside.  A significant pullback could now be on the cards to correct recent rally. The price of gold has shot higher and meets the bearish commitments at a critical juncture in the precious metal's journey.From a longer-term perspective, the bullish trend is well soiled, however, a significant pullback could now be on the cards to correct the highly overextended W-formation's impulse.The following is a top-down analysis which illustrates the compelling market structure and where the next trading opportunity could arise to the downside.Weekly chartThe price is meeting a strong level of resistance which prevented the mid-winter come back and the area would be expected to hold initial tests.Daily char...
Bitcoin Briefly Drops Close to $28K as Ether Futures Heat Up
Commodities, Crypto News

Bitcoin Briefly Drops Close to $28K as Ether Futures Heat Up

Over-leveraged bitcoin investors in the derivatives market led to Monday’s sell-off while ether spot and futures markets are starting to get a lot more attention.Bitcoin (BTC) trading around $31,444 as of 21:00 UTC (4 p.m. ET). Slipping 5.7% over the previous 24 hours. Bitcoin’s 24-hour range: $28,154-$33,562 (CoinDesk 20) BTC slightly below its 10-hour and well below the 50-hour moving average on the hourly chart, a bearish-to-sideways signal for market technicians.Bitcoin trading on Bitstamp since Jan. 1.Source: TradingViewThe price of bitcoin fell Monday, met by a spate of selling pressure. Around 10:00 UTC (5 a.m. ET), spot exchanges like Coinbase saw a larger-than-normal number of traders hitting sell, with 6,000 BTC in volume on the exchange during t...