Oil price slid below $30 mark again in New York yesterday as weekly data from the American Petroleum Institute showed a 3.8 million barrel stock build. This abundant supply contrasted with recent mixed manufacturing gauges in China and Eurozone. The figure also matched expected inventories for official data by U.S. Department of Energy tomorrow.

Volatility returned just as the world’s two largest oil & gas companies Exxon Mobil (XOM) and BP (BP) reported lowest earnings in a decade. As market’s expectation focuses on oversupply, a spot on report by DoE tomorrow may not be perceived so badly, hence support price consolidation.

Gold price holds up above the recent support at 1113 as investors flocked to safety amid an overnight risk sell-off. Gold’s status was further enhanced as world’s central banks reiterated their determination to employ easing policies to revive the economy. Bank of Japan’s Governor Kuroda today stated that there is no limit to [BoJ] monetary easing measure and it is possible to cut negative rate further.

Copper price remained static ahead of Lunar New Year as the world’s number 1 consumer China prepares for a week-long public holidays. As widely expected, China continued to roll out stimulus steps prior to the New Year, with a cut in mortgage down payment by PBoC. These moves may reinstate copper’s stability, apart from low trading volume.

GOLD TECHNICAL ANALYSIS – Gold price sustained gains above 1113 support level and the support trend line. Topside bias remains, with no sign of a threat to trend line yet. A slight uptick in momentum signals hint at prolonged upside bias.

Daily Chart – Created Using FXCM Marketscope

COPPER TECHNICAL ANALYSIS – Copper barely moved from the middle of 2.0020-2.1485 range even as momentum signals reversed down. Low trading volume prior to the New Year contained copper within its current price range. Immediate support level at 2.0020 has come into attention.