Crude Oil Sinks Amid Broad-Based Risk Aversion WTI Crude Oil (NY Close): $96.20 // -2.47 // -2.50% Crude prices are pushing aggressively lower as risk sentiment fades, with markets finding the toxic mix of deepening contagion to the Euro Zone debt crisis and the prospect of accelerated rate hikes in China in the aftermath of a sharp jump in headline inflation tough to swallow. Indeed, sentiment was already shaky after Friday’s bitterly disappointing US Jobs report. SP 500 stock index futures are pointing sharply lower ahead of the opening bell on Wall Street, hinting at further losses ahead for the WTI contract. Initial support lines up at $94.51, with a break below that exposing the $93.00 figure. Commodities – Metals Gold Outlook Remains Clouded Spot Gold (NY Close): 1544.15 // +11.77 // +0.77% The near-term outlook for gold remains clouded as the metal is pulled in opposing directions amid the return of aggressive risk aversion. On one hand, the metal is finding support as a safe-haven play against a backdrop of EU-driven pressure on financial markets and fading economic growth hopes for the second half of the year. On the other, the same dynamic is boosting the US Dollar, which inherently weighs against the yellow metal considering its price on global markets is quoted in terms of the greenback. This has produced near-standstill for the time being as prices test support-turned-resistance at a previously broken channel bottom. Reversal lower sees support at $1530.82, while a break higher targets $1557.96. Spot Silver (NY Close): $36.71 // +0.26 // +0.72% Prices are inching back from resistance at $36.64, the 50% Fibonacci extension level, ahead of the US jobs report. As with gold, forecasting near-term direction is profoundly difficult as the same conflicting forces pull the cheaper precious metal prices in opposing directions. Near-term support lines up at $35.86, while a break above immediate resistance exposes $37.41. For real time news and analysis, please visit http://www.dailyfx.com/real_time_news To receive future articles by email, please contact Ilya at ispivak@dailyfx.com

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