Gold, Silver and Oil Prices Preview

By Paul A. Ebeling, Jnr.,

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Analyst Paul Ebeling of 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.

Read More on International Business Times

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Commodities
Referenced Stocks: BHI , ETF

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