Oil & Gold : Still in a holding pattern
March 1, 2011 Leave a comment
The fact that crude is holding firm is a worry for the bulls who hope the Libya and broader MENA issues will just vanish. We gave 95 and 100 as key support and resistance for NYMEX light, and still think a move either way is worth waiting for before trading the black stuff again.
Spot gold is also holding very well, trading near 1413. We are waiting for a breakout above the 1417-1420 resistance or indeed a breach of 1400-1404 before getting excited here.
We are confident the Libya issues will flare up soon, and do not think the markets will really gain upwards momentum until a relief factor plays in – like Gaddafi being taken out by an insider.