WTI above US$100 as US stockpiles shrink According to KASB Securities Limited , Gold was up on Friday amid low volumes in the holiday season. The bullish momentum, however, was short lived as fund flow into equities continued and the prospect of a recovery in the US economy took hold. As a result, gold dropped to US$1,212 /oz. Oil traded above US$100 /barrel as government data revealed that crude oil stockpiles fell more than expected to the lowest level since September 2013 . Crude inventories slid by 4.73 million barrels last week to 367.6 million barrels, according to the EIA ( Energy Information Administration ). Source: Bloomberg , Reuters Key events/data releases Time Currency Impact Event Forecast Previous 30th December 2013 Monday 8:00pm US$ High Pending Home Sales m/m 1.1% -0.6% 31st December 2013 Tuesday 7:00pm US$ Medium S and P/CS Composite-20 HPI y/y 13.4% 13.3% 7:45pm US$ Medium Chicago PMI 61.3 63.0 8:00pm US$ High CB Consumer Confidence 76.5 70.4 Source: www.forexfactory.com/calendar Gold Spot Technical Strategy: Sell on strength Gold closed at US$1,212 , below the 15DMA which is at US$1,216 . Prices are currently trading below the horizontal trend line which is at US$1,211 . Additionally, RSI and Stochastic are bearish and hinting at lower prices. KASB Securities Limited recommends selling on strength below US$1,216 , targeting US$1,195 with stops above US$1,222 (20DMA). Silver Spot Technical Strategy: Sell on Strength Silver closed at US$19.75 , below the 50DMA which is at US$20.20 and currently trading below the 23.6% retracement level from US$18.87 - US$22.66 which is at US$19.77 . KASB Securities Limited recommends selling on strength below US$20.20 , targeting US$19.45 with stops above US$20.35 . WTI Spot (Crude Oil) Technical Strategy: Buy on Weakness Oil closed at US$100.19 , and closed above the 5DMA which is at US$99.91 . RSI and Stochastic are bullish and hinting higher prices in the near term. KASB Securities Limited recommends buying on weakness above US$99.91 , targeting US$100.96 with stops below US$99.26 (61.8% retracement level from US$92.09 - US$103.74 ).
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