NYMEX Traders: Gold Breaks Key $1,200 Level; $50 Oil is Attainable
Chinese interest rates were cut Friday, adding fuel to the commodity fire. Eric Zuccarelli, independent metals trader, tells TheStreet’s Jill Malandrino he anticipates a moderate effect on copper prices, but a pronounced effect on gold. As international central banks continue to debase their currencies, gold should benefit. Copper has broken out over $3.05-$3.06 and should head to $3.10-$3.12 to establish a new trading range, while gold has resistance around the $1,230 level. Peter Amandio of Chicago Energies expects a forecast of lower prices at the key OPEC meeting on November 27 to strategically challenge the high cost producers in North America. Barring any structural shift in supply or demand, he predicts oil will continue its downtrend following short term price spikes. Some analysts have suggested that China’s increased purchase of crude to direct toward their refiners could prop up the market, but Amandio suggests the possibility of China sending product to the end market and further depressing prices. Given the fundamental circumstances in the oil markets and dollar strength, he thinks the $50 level is easily attainable to the downside.
