Daily Bullions & Energy Report for 12th Feb 2013

GOLD:    Support: 1628 - 1638                                     Pivot: 1655

                   Resistance: 1664 – 1680  

Gold futures extended declines from Monday’s U.S. session during Asian trading Tuesday as technical pressure continued to build with the yellow metal languishing below USD 1,650 per troy ounce.  On the Comex division of the New York Mercantile Exchange, gold futures for March delivery slipped 0.31% to USD 1,644.05 per troy ounce in Asian trading Tuesday. Gold settled down 1.27% at USD 1,645.65 a troy ounce in U.S. trading on Monday. Gold futures were likely to test support USD 1,643.25 a troy ounce, the low from Jan. 7, and resistance at USD1,685.65, the high from Feb. 5.  Stochastic has given negative intersection just below 50 % zone and if failed to cross resistance of 1690 reversals in price may be expected to test 1640 – 1610 in near term.

SILVER:   Support: 30.38 – 30.66                                   Pivot: 31.09

                   Resistance: 31.37 – 31.80

Comex silver for March delivery dropped 0.35% to USD30.803 while copper for March delivery fell 0.07% to USD3.723 per ounce. Trade was quiet again today as markets in China, Japan, Singapore, Hong Kong, South Korea and other nations will be closed for all or part of this week due to Chinese New Year festivities. To this point in February, 1.2 tons of gold have been pulled from the SPDR Gold Shares, the world’s largest exchange traded fund backed by holdings of physical gold. 

Stochastic has given negative intersection just below 30 % zone and if sustain trading below recent low of 30.7 will bring some more selling where some more sharp correction can be expected to test 30 – 29 on lower side.

CRUDE:    Support: 115.90 – 116.60                             Pivot: 117.2

                     Resistance: 117.89 – 118.50

Oil futures fell modestly during Tuesday’s Asian, paring gains notched during U.S. trade Monday European Central Bank official said the euro wasn't overvalued. Meanwhile, Gulf members of the Organization of the Petroleum Exporting Countries are believed to not favor raising prices despite oil’s recent spike higher. Gulf OPEC members include Saudi Arabia, the cartel’s largest producer, Iran and Iraq. Saudi Arabia has previously favored keeping prices around USD90 per barrel to avoid demand destruction. OPEC accounts for about 40 percent of global oil output.  Stochastic drifted from the overbought zone and has been moving negative where if sustain trading below 117 will continue the fall and can test 113 level.