Commodities - Energy
Crude Oil Up on Chinese Yuan News
Crude Oil (WTI) $78.08 +$0.90 +1.17%
Crude oil is rising as China signals that it will allow more flexibility in its exchange rate. The news is benefitting all risk assets, not just oil. While news has no immediate impact on oil fundamentals, longer term, a stronger exchange rate means more purchasing power for the Chinese consumer, which is bullish for commodities. Wednesday’s high at $78.13 is the level to watch, as a break exposes $80.00. On the downside, $75.50 is support.
Commodities - Metals
Gold Holding Up as $1250 Resistance in the Rearview
Gold $1256.55 -$0.25 -0.02%
Gold is flat as prices consolidate the gains from last week. Prices soared through $1250 resistance, as expected. There are no reliable technical indicators above these levels, but prices will be attracted to the psychological $1300 number and it may be wise to sell positions a little ahead of that number if one were long for a trade. The gold market continues to be driven by insatiable investor demand and momentum traders. Any short-term position from these levels is fraught with risk. Former resistance is now support at the $1250 level.
Silver $19.15 -$0.03 -0.13%
Like its more prominent counterpart, silver is consolidating gains from last week. In the event of further advances, silver will likely outperform gold as it plays catch up. The next level to watch is $19.83, the recent highs, followed by $21.36, the 2008 highs. The rise in silver could be explosive is gold continues toward $1300.
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