World commodity chart update for 12/05/2009

Gold closed sharply lower on Monday as it consolidated last week's rally on speculation that demand from investors stalled and as a drop in oil prices diminished the attraction of the metal as a hedge against inflation. The mid-range close sets the stage for a steady to lower opening onTuesday. Stochastics and the RSI are neutral signalling that sideways prices are possible near-term. If it renews April's rally, the reaction high crossing is the next upside target.

Silver posted an inside day and closed lower on Monday as it consolidated last week's rally on speculation that demand from investors stalled and as a drop in oil prices diminished the attraction of the metal as a hedge against inflation. The mid-range close sets the stage for a steady to lower opening onTuesday. Stochastics and the RSI are neutral signalling that sideways prices are possible near-term. If it renews April's rally, the reaction high crossing is the next upside target.

U.S. STOCK MARKET INDICES

DJI closed lower on Monday due retreating from a four-month high. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold but are neutral to bearish signalling that sideways to lower prices are possible near-term. SPI closed lower on Monday due retreating from a four-month high. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold but are neutral to bearish signalling that sideways to lower prices are possible near-term. NDI closed slightly higher on Monday and above the weekly downtrend line crossing. The mid-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but are neutral signalling that sideways to higher prices are possible near-term.

ENERGY

Crude Oil posted a key reversal down and closed lower on Monday as last week’s 10 percent advance will be undone as U.S. inventories climb and fuel consumption declines. The mid-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bullish signalling that sideways to higher prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.