Please try another search
Oil fell for the second session in a row overnight and has continued lower in Asia, as fundamentals reassert themselves. Any hope of a gargantuan US fiscal stimulus package is almost gone. Covid-19’s rampage across Europe and the US is likely to deliver a hit to consumption. With no concrete evidence that OPEC+ is moving to slow or reverse the pace of production increases, the supply/demand imbalance has capped oil’s pre-election rally.
Brent crude fell 1.25% overnight to USD40.65 a barrel, failing ahead of its 50-day moving average (DMA). It has eased another 1.60% in Asia to USD40.00 a barrel leaving it poised for further losses to USD39.00 a barrel initially.
WTI fell by 1.60% overnight to USD38.50 a barrel, also failing ahead of its 50-DMA. In Asia, it is has retreated lower by another 1.80% to USD37.80 a barrel, with the next technical support around USD37.00 a barrel.
With fundamentals reasserting themselves, oil will need soothing noises from OPEC+, or an upside surprise by tonight’s Non-Farm Payrolls to find some solace and support.
With the US dollar in full retreat, and US Treasury yields falling, gold finally found the momentum it needed to break higher. Having invalidated the symmetrical triangle, gold broke through what was multi-month trendline resistance at USD1913.60 an ounce. Gold powered to USD46.00, or 2.45% higher to close at USD1949.60 an ounce.
With the world reverting to a zero per cent yield one, resetting the clock to the pre-election environment, gold’s bullish fundamentals are rapidly reasserting themselves. No matter what the election result in the US is now, gold and silver look set to resume their longer-term path higher.
With some profit-taking evident in US equity futures and the US dollar this morning, gold has retreated modestly to USD1938.00 an ounce. However, there should be legions of willing buyers into the USD1910/20 an ounce region, which was previous resistance.
Gold has initial resistance at the overnight high around USD1953.00 an ounce, followed by USD1960.00 and USD1975.00 an ounce. None of that technical resistance is significant though, and the road to USD2000.00 an ounce is less obstructed than it has been for some time.
Brent crude prices continue to face downside pressure as technical indicators and fundamentals hint at further downside. Markets are digesting a host of factors at present and...
Gold Gold (XAU/USD) continues to hit heavy selling pressure on every rally, as we established a week ago. Yesterday we collapsed to support at 2904/00 but longs were stopped...
Energy prices are under pressure amid demand concerns and improving prospects for a Russia-Ukraine peace deal. But tariff risks continue to hit metal markets Energy-WTI Below...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.