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.

Daily Forex Report for 12th Feb 2013

EURUSD: Support 1.3326 – 1.3364                              Pivot: 1.3396

                   Resistance: 1.3434 – 1.3466

The euro was almost unchanged near two-week lows against the dollar on Monday as concerns over political uncertainty in the euro zone weighed and investors watched a meeting of euro zone finance ministers. EUR/USD hit 1.3412 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3374, edging up 0.05%. The pair was likely to find support at 1.3352, Friday’s low and a two-week low and resistance at 1.3478, the high of January 25. Earlier Monday, official data showed that French industrial production came in slightly better than expected, falling 0.1% in December from November compared to expectations for a 0.2% drop. Stochastic are trading below 20% oversold zone where support is seen at 1.3350 and trading below some more selling is expected.

GBPUSD: Support: 1.5540 – 1.5598                             Pivot: 1.5704

                    Resistance: 1.5761 – 1.5867

The pound remained lower against the U.S. dollar on Monday, as sustained concerns over the outlook for growth in the U.K. continued to weigh on demand for sterling.  GBP/USD hit 1.5703 during U.S. morning trade, the pair's lowest since February 7; the pair subsequently consolidated at 1.5713, shedding 0.54%.  Cable was likely to find support at 1.5646, the low of February 7 and resistance at 1.5810, the session high.  Last week the BoE warned that the economic recovery would be “slow and sustained” and “likely to remain muted in the near term” after it announced a decision to leave interest rates on hold at 0.5% and keep its easing program unchanged. Stochastic has given negative intersection and if sustain trading is seen below 1.5630 free fall is expected to test 1.5400. 

AUDUSD: Support: 1.0203 – 1.0231                            Pivot: 1.0278

                     Resistance: 1.0306 – 1.0353

The U.S. dollar traded mostly lower against its major rivals in what is looking like another quiet Asian session on Tuesday. Markets in Hong Kong, Shanghai and others across the region remain closed for Chinese New Year festivities. AUD/USD climbed 0.10% to 1.0266 even after reports that traders are increasing bets that the Reserve Bank of Australia will pare rates later this year. Some traders are betting on nearly 50 more basis points being shaved from RBA’s key overnight rate, currently 3%. Even a 25 basis point reduction to 2.75% would take Australian interest rates to a record low. 

Stochastic are trading just above oversold zone with negative intersection and if trading is seen below 1.0250 can move to test 1.0160 level on lower side.