Oil, Gold Track Higher on Support From Risk Appetite
Posted 04-09-2010 at 10:04 AM by DailyFX
Tags commodities, currency trading, forex, gold, oil
Crude oil has recovered above the $86 figure while gold and silver have extended gains amid a broad recovery in risky assets. US stock index futures hint more of the same may be ahead.
Commodities - Energy
Crude Oil Recovers From Fib Support on Risk Appetite
Crude Oil (WTI) $86.18 +$0.79 +0.93%
Prices reversed lower from the $87 figure to find support at $84.93, the 23.6% Fibonacci retracement of the 03/22 - 04/05 advance, and have now mounting a shallow recovery. Risk trends remain significant, with the 21-day percent-change correlation between crude and the MSCI World Stock Index at 0.78. This points to continued upside in the near term with stocks showing strong gains in Asian and European trade and US index futures ticking higher ahead of the opening bell on Wall St. US wholesale inventories is the only meaningful bit of scheduled event risk on the docket.
Commodities - Metals
Gold, Silver Extend Gains on Boost from Risky Assets
Gold $1157.23 +$6.68 +0.58%
Prices continue to inch along resistance at the top of a rising channel set from the swing bottom in late February. The influence of risk trends has been firming considerably in recent days with the 21-day correlation between the metal and the MSCI World Stock index now at 0.73, hinting that the positive cues across stock markets may translate into continued gains.
Silver $18.34 +$0.24 +1.30%
Prices continue to push higher, testing above resistance at the $18.25 level. As with gold, the influence of risk trends as returned in a major way with the correlation between silver and the 21-day MSCI World Stock index now at a hefty 0.87. A break beyond higher from current levels opens the door for a challenge of the $19 figure.
For real time news and analysis, please visit http://www.dailyfx.com/real_time_news
To receive future articles by email, please contact Ilya at ispivak@dailyfx.com
Read more: DailyFX - Oil, Gold Track Higher on Support From Risk Appetite http://www.dailyfx.com/forex/fundame...#ixzz0kbxk4dEy
Commodities - Energy
Crude Oil Recovers From Fib Support on Risk Appetite
Crude Oil (WTI) $86.18 +$0.79 +0.93%
Prices reversed lower from the $87 figure to find support at $84.93, the 23.6% Fibonacci retracement of the 03/22 - 04/05 advance, and have now mounting a shallow recovery. Risk trends remain significant, with the 21-day percent-change correlation between crude and the MSCI World Stock Index at 0.78. This points to continued upside in the near term with stocks showing strong gains in Asian and European trade and US index futures ticking higher ahead of the opening bell on Wall St. US wholesale inventories is the only meaningful bit of scheduled event risk on the docket.
Commodities - Metals
Gold, Silver Extend Gains on Boost from Risky Assets
Gold $1157.23 +$6.68 +0.58%
Prices continue to inch along resistance at the top of a rising channel set from the swing bottom in late February. The influence of risk trends has been firming considerably in recent days with the 21-day correlation between the metal and the MSCI World Stock index now at 0.73, hinting that the positive cues across stock markets may translate into continued gains.
Silver $18.34 +$0.24 +1.30%
Prices continue to push higher, testing above resistance at the $18.25 level. As with gold, the influence of risk trends as returned in a major way with the correlation between silver and the 21-day MSCI World Stock index now at a hefty 0.87. A break beyond higher from current levels opens the door for a challenge of the $19 figure.
For real time news and analysis, please visit http://www.dailyfx.com/real_time_news
To receive future articles by email, please contact Ilya at ispivak@dailyfx.com
Read more: DailyFX - Oil, Gold Track Higher on Support From Risk Appetite http://www.dailyfx.com/forex/fundame...#ixzz0kbxk4dEy
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