Gold Price Chart Hints at Topping as Crude Oil Eyes API, EIA Reports

Gold Trading Alerts:

Gold prices may continue to tread water until Friday’s top-tier US reports
Crude oil prices eyeing supply chain dynamics in API data, EIA forecasts
What do retail traders’ bets suggest about gold price trends? Find out here
Marquee commodities did not find sufficient inspiration for trend development on the first day of the trading week. Gold prices marked time, unmoved by the day’s offering of Fed-speak and seemingly waiting for Friday’s US inflation and retail sales data before committing one way or another. Crude oil prices edged up a bit but ultimately failed to sustain momentum as traders await API inventory flow data and monthly EIA report on short-term supply and demand trends.

Official figures from the US Department of Energy due Wednesday are expected to show raw-material storage shed 3.4 million barrels last week while gasoline stocks added 2.9 million. That will offer a benchmark for the API release. Supply chain dynamics have been more market-moving than individual readings lately. A small draw at the top relative to a big build at the bottom may hurt prices, for example.


GOLD TECHNICAL ANALYSIS – Gold prices continue to hover below four-month highs established last week, with negative RSI divergence hinting that a pullback may be brewing. A daily close below the 50% Fibonacci expansion at 1312.90 puts the 38.2% level at 1294.91 back in the crosshairs. Alternatively, a return to the offensive that takes prices above of the 61.8% Fibat 1330.89 exposes the 1353.15-57.50 area (76.4% Fib, September 8 high).

CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices are struggling to build higher after rising to a 2.5-year high, with negative RSI divergence now warning a turn lower may be ahead. A drop back below the 23.6% Fibonacci expansion at 59.83 exposes the 14.6% expansion at 58.30 anew. Alternatively, a daily close above the 38.2% Fib at 62.31 targets the 50% expansion at 64.32.

How price of gold effect the Malaysian market this year?

The gold market observes a steady charge rise in recent years. Clearly, factors affecting price of gold involve the basics of aesthetic and precautionary gold demand.

The gold market price has dramatically accelerated during the last decade; the gold price has made this yellow metal an attractive trading asset. Demand of gold has especially increased in the Asian counties such as Malaysia, Singapore, China, Hong-Kong etc.


Commodities vary from stocks or bonds in the manner that, normally they have first rate significance for some industry. The price of gold has different effects on different market. The handiest manner wherein commodities generate returns is when their rate changes in the course you wager on.

Relation between Gold and Forex Market:

Gold and dollar each are worldwide. Gold and dollar rate are inversely proportional. whilst Dollar’s rate fall people will not buy gold at that point because they need to pay more dollars to buy gold and when trading price will become high, traders will inclined to buy gold at that time due to the fact they can pay less dollars.

Gold is Inversely Proportional to Dollar, i.e.   
Gold Price= 1/Dollar



Weakness of Dollar usually provides power to gold investment in long term state and in short- time period dollar and price of gold each can rise or fall together. So this can be known as strategic relationship.

Relation between Gold and Commodity Market:

Normally the rates of gold and crude oil are associated. Higher price of crude oil in commodity trading Malaysia market might translate in higher prices of gold.

Gold price is Directly Proportional to Crude oil Price, i.e.

 Gold Price= Crude Oil Price



Relation between Gold and Stock Market:

If stocks price goes up, gold price goes down and vice versa. It implies that that the gold is inversely proportional to the stock price.

Gold Price is inversely proportional to Stock Price, i.e.

Gold Price= 1/ Stock Price



Traders generally take gold as a haven when they see a downturn in the stock market.  Few investments turn out to be less profitable and investors assume gold stock price will supply them some room for making profit.


Why gold commodity that has this particular characteristic? Most possibly it is because of its history as it is considered as the first form of money, and sooner or later as the base for the price of gold as per gold news today which set the price for all money.

Because of this, gold confers a familiarity and makes feeling of security as a source of money with the intention to usually have value, no matter what.

This characteristic additionally explains why it has a tendency to be uncorrelated with different assets. This indicates it doesn’t move up whilst other asset classes do. It doesn’t even have an inverse dating, like gold stock market and bonds do with each other.

As a substitute, it is a reflection of so many different investor sentiments. It is another reason to have gold stocks today as a part of a diversified portfolio modern day globalized where most assets are notably correlated.


Investors buy gold as for 3 motives: A hedge, a safe haven or an immediate investment.

1. A hedge:

Traders use hedges to offset losses in every other asset order. Many investors buy gold using gold tips to hedge towards the decline of a foreign money, usually the U.S. dollar. This also protects in opposition to the resultant inflation.

2. A safe heaven:

A safe haven protects traders from disaster. It really is why many investors buy gold with the help of commodity advisory all through the financial crisis.

Commodity advisor helps traders in knowing the exact time and price of buying gold by providing gold signal service to them. Advisory not only provides signals for gold but also commodity tips to help traders trade profitably.

3. Immediate investment:

Many traders noticed terrific increase in the price of gold and purchased it as a right away investment using commodity signals to take benefit of future price increase. Others buy gold consistently because they see it as a finite precious substance, with many business uses.

Remaining but no longer least, gold is held via many governments and rich people. However various persons trade and buy gold but they use gold picks to do so and to gain profit from gold investments.


Price of gold has a profound impact at the price of Malaysian market.  Gold as a commodity can act rather for fiat currencies and be used as a powerful hedge in opposition to inflation. There’s no question that gold will continue to play an imperative position inside the markets. Consequently, it’s a vital metal to comply with and examine for its particular ability to represent the health of economy.