Commodities - Energy
Crude Tests Above $75 as Chinese Trade Data Catalyze Gains in Risky Assets
Crude Oil (WTI) - $75.07 // $0.92 // 1.24%
Crude prices tested above the $75/barrel level, boosted by continuing weakness in the US dollar and a report from the Organization of Petroleum Exporting Countries (OPEC) where the export cartel updated its 2010 global demand forecast on expectations of a robust recovery in emerging economies. Better than expected trade figures out of China offered additional support as exports fell at the slowest pace in eight months in September, adding to confidence that the nascent global recovery of recent months will remain on track. Technically, the $75 level presents significant resistance with the confluence of a rising channel top and the August high, creating the possibility of a double top being established in the days ahead.
Commodities - Metals
Gold, Silver Extend Gains on US Dollar Weakness, Technicals Warrant Caution
Gold - $1069.28 // $5.00 // 0.47%
Gold prices continued to creep higher in Asian trading, with the culprit being the weaker US Dollar once again. The safety-correlated greenback came under assault after stocks pushed higher in Asian trading on better-than-expected Chinese trading figures (as mentioned above), with the MSCI Asia Pacific regional benchmark index rising to a fresh 13-month high. The technical picture remains vulnerable however, with momentum indicators showing continuing to show clear negative divergence as prices advance.
Silver - $18.03 // $0.24 // 1.32%
Silver continued to advance, pushing to a new 14-month high in Asian trading. The lesser precious metal continues to trade around the same themes as its more expensive counterpart, seeing demand as an inflation hedge as the US Dollar continues to set new yearly lows.
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