Commodity prices firmed ever so slightly on the last trading session of the week with the CRB index closing 0.15 points higher at 317.57. However, the trend today has been decidedly lower. WTI Crude oil has lost 0.4% today to trade at $99.15 as International Atomic Energy Agency inspectors arrived in Iran for talks on Iran’s nuclear program. Precious metals also lost ground continue with gold falling 0.7% to $1,723 while silver lost 1.9% to $33.15. Soft commodities were broadly weaker while copper lost almost 2%.
GOLD
GOLD continues to consolidate and move higher after last weeks boost by the Fed Reserve which now sees gold firmly in the $1,700 territory. The range on Friday was $1,713 to $1,740 and it opens the morning near the top of this range. The USD continues to remain weak and whilst there are no other shocks to the financial system gold will continue on its merry way high-er back towards its all time highs above $1,900. We continue to hear of central banks and semi-government organisations diversifying into gold and the very firm bounce off critical support at $1,630 has us confirm our bullish bias on the metal in both the short and medium term. Certainly a retracement towards $1,700 is possible but it will be a temporary move as gold moves aggressively above resistance at $1,750 to target a test of $1,800. For today look for any dips towards $1,720 as an opportunity for those who would like to initiate new long positions. Resistance at $1,655 should hold for today.
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