Analyst Paul Ebeling of www.livetradingnews.com takes a look
at Gold, Silver and Oil Prices SPDR Gold Trust (
ETF
), NYSE:GLD, iShares Silver Trust (
ETF
), NYSE:SLV, United States Oil Fund LP (
ETF
) NYSE:USO
The Overall Fundamentals
Last week was quiet with light economic calendar despite a
number of meetings among policymakers. The EU and the Ecofin
meetings held earlier in the week failed to any new
insight to the sovereign debt problems in the Eurozone
although the ESM was officially launched last Monday.
The World Bank and the IMF revised lower global economic
forecasts for this year and Y 2013 as the Chinese slowdown will
probably be more serious than thought.
Precious Metals
Gold prices held just under 1,800, the market does not have
many catalysts to push it through that mark, and action this week
could be similar to last week's
Prices were down on the week. The most-active Dec Gold
contract on the Comex division of the Nymex settled at 1,759.70,
down 1.19% on the week. Dec Silver settled at 33.669, down 2.61%
on the week
Crude Oil
Crude oil gained last week especially driven by geopolitical
tensions between Turkey and Syria. The latest headline is that
Turkish civilian flights are banned in Syria. The issue affects
Crude Oil supply to European countries more, thus boosting Brent
Crude more than WTI Crude. The supply side problem is exacerbated
by cargo delays in the North Sea. The WTI-Brent spread widened to
as much as 23.7 at close last Thursday.
Natural
Gas
The Doe-EIA reported that Nat
Gas
inventory increased +72 bcf to 3725 bcf in the week ended 5
October. Stocks were +236 bcf higher than the same period last
year and +269 bcf above the 5-yr average of 3456 bcf.
US Rig Count: Baker Hughes (
BHI
) reported that the number of gas rigs fell -15 units to 437
in the week ended October 12. Oil rigs increased +13 units to 1
411 and miscellaneous rigs stayed unchanged at 2 units and the
total number of rigs slid -2 units to 1 835. Directionally
oriented combined Oil,
Gas
, and Miscellaneous rigs stayed at 194 units while horizontal
rigs decreased -20 units to 1 112 and vertical rigs rose +18
units to 529 during the week.
The Overall Technicals
Comex Gold (GC)
Gold's correction from 1798.1 continued last week, more
decline may seen, but as long as 1720, the minor
support holds, current rise is expected to continue. A clear
break of 1792.7/1804.4, the resistance zone, will have
larger Bullish implications and showthe way to 1923.7,
the historical high. But, a break of 1720 will
indicate near term reversal and will turn outlook Bearish for
1674, the Key support.
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International Business Times