Monday, January 4, 2010
A renewed surge in demand for yielding assets is helping to drive crude oil and gold prices overnight. A firm undertone is also developing in the equity markets while the Dollar is
under pressure.
The strong rally in February Gold turned the main trend to up on the daily chart on the move through $1114.50. The daily chart indicates this market is poised to rally another $30
back to a retracement zone at $1151.30 to $1169.30.
The news of a better than expected surge in Chinese manufacturing is helping to trigger a breakout to the upside in March Crude Oil. Traders are expected to see increased demand for
energy. In addition, cold weather in the U.S. has led to a pick-up in demand for heating oil and natural gas. The last main top at 81.52 was broken overnight, setting the stage for a test of the
October top at 83.60.
A strong surge in U.K. and China manufacturing data helped to pressure the Dollar overnight. These two better than expected reports triggered renewed interest …
