Daily Analysis: Oil and Gold Jump on Saudi Turmoil

Monday Market Recap

Asset Current Value Daily Change
S&P 500 2588 0.22%
DAX 13,468 -0.05%
WTI Crude Oil 57.34 3.06%
GOLD 1281.00 0.98%
Bitcoin 7133 -5.11%
He 1.1612 0.06%

While rumors have been circling about a severe inner struggle in the Saudi Royal family, the weekend’s serious crackdown caught everyone by surprise. As of now, two princes died in one day, while dozens of high-ranking officials were arrested, in what could be described as a reverse coup by crown prince Mohammad bin Salman, not unlike the events in Turkey earlier this year.

The price of crude oil jumped to a more than two-year high following the events, as the offensive strategy of the prince puts the balance of the Middle East into jeopardy, although the fundamentals of the energy market remain highly vulnerable. Gold and natural gas also surged higher today as a consequence of the crisis, while the Japanese Yen gained ground too, thanks to increased safe-haven flows.

WTI Crude Oil, Daily Chart Analysis

Equity markets barely budged on the turmoil, as the most important US indices are still hitting marginal new all-time highs, while European and Asian stocks are slightly lagging behind. The NASDAQ is pulling is weight with the help of Apple and Amazon, although market internals still show a strong divergence between the leaders of the rally and the majority of stocks.

Apple, 4-Hour Chart Analysis

Currency markets had an active session, with the Great British Pounds rebound and the Yen’s strength dominating the day. Commodity currencies, such as the Canadian Dollar and the Aussie, also gained ground thanks to the jump in the energy segment and gold, while the Euro performed at par with the USD, with no major economic releases coming out in the most-watched markets.


The major coins had another hectic session after the busy weekend, with Bitcoin’s decline stealing the show, as the currency slipped below the $7000 level. BTC is still the best performing coin on almost all time-frames, but the overbought technical picture points to elevated risk regarding the short-term outlook.

Altcoins experienced some buying as capital fled Bitcoin, while the total value of the segment gradually declined below the historic $200 billion mark. Ethereum Classic continued to make headlines, but Monero although rallied strongly, while IOTA showed signs of strength in the second half of the session. The rest of the market was little changed, and that could mean that the volatility in BTC won’t “infect” altcoins during the correction.                                               

XMR/USD, 4-Hour Chart Analysis

Key Economic Releases on Monday

Time, CET Country Release Actual Expected Previous
03:00 JAPAN BOJ Governeor Kuroda Speaks
17:00 CANADA Ivey PMI 63.80 60.20 59.60

Key Economic Releases on Tuesday

Time, CET Country Release Expected Previous
05:30 AUSTRALIA RBA Rate Decision 1.5% 1.5%
05:30 AUSTRALIA RBA Statement
10:30 UK Halifax HPI 0.3% 0.0%
11:00 EUROZONE ECB President Draghi Speaks
21:30 US Fed Chair Yellen Speaks

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Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.