Oil
Oil prices are getting battered by falling demand concerns that have stemmed from growing travel bans in China. China has quarantined Wuhan, a city of 11-million and Huanggang city, which has a population of 7.5 million. Oil is struggling to stabilize here since both the supply and demand side news have been mostly bearish. Oil can’t shake non-OPEC production oversupply concerns followed by fading optimism OPEC + will be able to continue to delivering production cuts deeper into 2020. Oil is resting on critical support and swelling supplies in the US could be the straw that breaks its back in the short-term.
Gold
Gold prices are softening despite a wave of risk aversion in Asia, as investors become skeptical the upcoming Lunar New Year holiday will see limited gold purchases from China. All the travel bans occurring in China have shifted the focus of many to securing food and medical supplies and not holiday buying of gold. Gold sellers are focusing on a barrage of bearish signals that include the possible formation of a death cross. The yellow metal has been a tight $30 range over the past two weeks and it seems that when it finally breaks momentum traders could help extend the move.
Oil prices are getting battered by falling demand concerns that have stemmed from growing travel bans in China. China has quarantined Wuhan, a city of 11-million and Huanggang city, which has a population of 7.5 million. Oil is struggling to stabilize here since both the supply and demand side news have been mostly bearish. Oil can’t shake non-OPEC production oversupply concerns followed by fading optimism OPEC + will be able to continue to delivering production cuts deeper into 2020. Oil is resting on critical support and swelling supplies in the US could be the straw that breaks its back in the short-term.
Gold
Gold prices are softening despite a wave of risk aversion in Asia, as investors become skeptical the upcoming Lunar New Year holiday will see limited gold purchases from China. All the travel bans occurring in China have shifted the focus of many to securing food and medical supplies and not holiday buying of gold. Gold sellers are focusing on a barrage of bearish signals that include the possible formation of a death cross. The yellow metal has been a tight $30 range over the past two weeks and it seems that when it finally breaks momentum traders could help extend the move.
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