The crude oil bounce continues but the primary trend is down. WTI Light Crude (shown here on a monthly chart) is likely to test resistance at $60/barrel, followed by another test of primary support at $45.
Weak crude tends to coincide with a weak gold price. At present the two commodities are diverging, with gold rallying as crude falls. Safe haven demand for gold, due to rising global uncertainty, is the most likely explanation.
Spot Gold is testing resistance at $1350/ounce. Breakout would signal a primary advance but gold is expected to follow oil lower in the long-term.
The All Ordinaries Gold Index broke resistance at 5400/5500, signaling an advance to 7000. Strength of the advance depends on a weaker Aussie Dollar and/or a stronger gold price in US Dollars.
