COMMODITIES: Gold Highly Volatile But Still Above Firm Support at 20-Day EMA

Gilt futures briefly extend to fresh weekly highs before fading, currently +19 ticks at 91.40. Initial resistance is the December 17 high at 91.78.

Yields are up to 2.5bps lower across the curve, with 10s attempting to consolidate below 4.50%.

Domestic news flow usurpingly quiet ahead of today’s early close.

The trend condition in WTI futures remains bearish and gains are considered corrective - for now. MA studies are in a bear-mode position, highlighting a dominant downtrend. A key support and the bear trigger at $56.11, the Oct 17 low, has recently been breached. The break highlights a continuation of the downtrend and opens $53.77, a Fibonacci projection. Key S/T resistance is $61.25, the Oct 24 high. First resistance is at $58.56, the 50- day EMA. The trend structure in Gold is unchanged, it remains bullish and a sharp sell-off this week appears corrective - for now. The trend is overbought and a deeper retracement would allow this condition to unwind. First support at $4324.8, the 20-day EMA, has been pierced. A clear break of the average would expose the 50-day EMA at $4183.5. For bulls, a resumption of gains would open $4578.3, a Fibonacci projection.

• WTI Crude up $0.2 or +0.35% at $58.13
• Natural Gas down $0.15 or -3.85% at $3.819
• Gold spot down $11.96 or -0.28% at $4328.47
• Copper down $12.65 or -2.19% at $565.25
• Silver down $4.32 or -5.66% at $72.0649
• Platinum down $152.2 or -6.98% at $2030.63

A bull cycle in EUROSTOXX 50 futures remains intact and the latest pullback appears to have been a correction. The first key support to watch lies at 5691.88, the 50-day EMA. A clear break of the EMA would highlight a potential short-term reversal. This would open 5622.00, the Nov 26 low. For bulls, sights are on key resistance at 5847.00, the Nov 13 high. The price pattern on Dec 18 is a bullish engulfing candle - a reversal signal. Short-term weakness in S&P E-Minis appears corrective. A key short-term support has been defined at 6771.50, the Dec 18 low. A break of this level is required to signal scope for a deeper retracement and would highlight a possible short-term reversal. For bulls, sights are on key resistance at 7014.00, the Oct 30 high. Clearance of this hurdle would confirm a resumption of the primary uptrend.

• Elsewhere, in China the SHANGHAI closed higher by 3.724 pts or +0.09% at 3968.84 and the HANG SENG ended 224.06 pts lower or -0.87% at 25630.54.
• Dow Jones mini down 66 pts or -0.14% at 48584, S&P 500 mini down 18.75 pts or -0.27% at 6925.75, NASDAQ mini down 104 pts or -0.41% at 25572.25.