Commodities - Energy
[B]Crude Breaks Key Resistance at $75, Positions to Continue Higher[/B]
[B]Crude Oil (WTI) $75.22 // $0.04 // 0.05%[/B]
Crude prices have broken above key resistance at $75.00 and proceeded to take out the upper boundary of a rising channel that had been guiding prices higher since September. Familiar catalysts are in play, with swelling optimism about the global recovery driving expectations of future demand all the while the US Dollar continues to slump, adding buying interest from traders seeking an inflation hedge. From a technical perspective, the break opens the door for a move to test resistance in the $77.50 - $78.50 area.
Commodities - Metals
[B][B]Gold Diverges from Oil Prices as US Dollar Stages Uneven Rebound[/B][/B]
[B]Gold $1053.55 // -$8.85 // -0.83%[/B]
Curiously, gold prices are clearly diverging from the weak-dollar theme that has guided metals and energy prices over recent days. While crude continues to push higher, gold has taken out rising channel support and now looks to set to break below a flatter minor rising trend line to open the way for a decline to $1044.00. This is especially interesting given the backdrop in the currency markets, where the US Dollar is bouncing higher nearly all the majors with the notable exception of the British Pound. It seems a realignment of sorts is underway, though it remains to be seen what is produced once it is completed.
[B]Silver $17.55 // -$0.33 // -1.85%[/B]
The drop in silver has been even more pronounced than that of gold, with prices testing below major support at $17.50, the range bottom that has contained prices since the beginning of the month. We will continue to monitor markets as things develop, but early cues seem to hint that a material reversal in risk appetite may be brewing.
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