COMMODITIES: Gold Softer But Bull Cycle Intact, Oil Range Bound

Gold is softer, but above Thursday lows at this stage, as sentiment turns a little more cautious post the recent surge through $4000. We are still up +2% for the week, tracking higher for the 10th straight week (spot bullion was last near $3964). Oil benchmarks are little changed, last at $65/bbl for Brent and $61.40/bbl for WTI. We are tracking close to 1% firmer for the week, but this followed last week's near 8% fall. Some support for oil has been evident following a more cautious OPEC November output increase and US product drawdowns.

• For gold, the recent correction from highs of $4059.3, looks to be profit taking/technical correction. Such flows may have been encouraged by the recent Israel/Hama ceasefire as well (lowering geopolitical tensions).
• Via DJ, the debasement theme remains key one though: "The gold rally this year signals increasing distrust in the existing fiscal and monetary order, says Ajay Rajadhyaksha, Barclays global chairman of research, in a note. "
• Even with a softer USD backdrop so far today, gold is still tracking lower, which also points to positioning/momentum driving price shifts in the near term.
• Gold is still well above its 20-day EMA (last around $3831), while a fresh test above $4000 may see sights set on $4074.54, a Fibonacci projection.