Fundamentals, Oil & Gold, Uncategorized

Oil and Metals Look to OECD Outlook, Geithner Testimony as Catalysts

Commodities – Energy

Oil Testing $80 Once Again, OECD Outlook and Geithner Testimony Key Ahead

Crude Oil (WTI)       $79.14       -$0.44       -0.55%
After what looked like a bearish breakout last week, crude is back in familiar territory below triple top resistance near the $80 level. Near-term support lines up at $78.13. On the fundamental side of things, the docket presents plenty of opportunities for volatility with release of the second installment of the bi-annual OECD global economic outlook is of interest, US jobless claims and leading indicators data, as well as testimony from US Treasury secretary Tim Geithner before a joint session of Congress.

Commodities – Metals

Gold, Silver Technical Positioning Points Lower, Geither Testimony in Focus

Gold       $1136.68       -$8.83       -0.77%
Gold has come off from resistance at the top of a rising channel, with prices now inching lower towards initial support at $1132.10. A break below this juncture opens the door to test the channel bottom near $1125. Fundamentally, Treasury secretary Tim Geithner’s testimony is likely the most important catalyst to watch, with gold prices driven largely by inflation expectations that are firmly rooted in US policymakers’ policies over the past year.

Silver       $18.26        -$0.30       -1.64%
After a bit of divergence last week, a catch-up rally as brought silver back in line with trends in its more expensive counterpart. That said, the most recent highs just below the $19.00 level are clearly divergent with momentum indicators, suggesting a move lower is likely. Initial support is seen at $18.08.