The other gold market has been surging and so has this key market.
Crude Gushing – “Black” Gold Surging
September 28 (King World News) – Top Citi analyst Tom Fitzpatrick sent King World News the following note: Despite concerns around refinery closures and inventory builds post Hurricanes Harvey and Irma, WTI Oil has traded constructively and, in our view, has the potential to reach $60+ as we head into the end of the year…
WTI Crude has broken through the trend line across the 2017 highs and this overall setup can be viewed as a triangle consolidation before the prevailing trend higher resumes. In fact, the break higher suggests just that (see chart below).
Price Of Crude Oil Surging!
An inverted head and shoulders which targets $59 has also been confirmed. This is in line with the resistance around the $60 – $62 area where multiple levels converge inc luring the 200 week moving average — a historically pivotal level — and the 2015 highs. Interim resistance comes in around $55, the 2017 highs.
Fixed Income – Interest Rates
Is the shoe getting ready to drop?
As in FX there are some potentially interesting monthly developments taking place on a number of US yield charts that could suggest a strong move higher in yields in Q4, 2017. US 2 year yield will post an outside month on a close this week over 1.37%, suggesting extended gains towards at least 1.75% if not higher (see chart below).
US 10 year yield could also post an outside month this month if it closes this week above 2.32% (see chart below).
If we see that close we could expect it to yield, at a minimum, a retest of the 2.64% peaks of March 2017 and December 2016 respectively.
King World News note: I would just add that commercial hedgers still have a very large (historic) short position in the crude oil market (see 10-year chart below).
Commercials are also heavily short the Total Energy Hedgers Positions (see chart below).
KWN will keep a close eye on interest rates and crude oil, but particularly crude oil because it has such a significant impact on overall inflation. If the price of crude oil continues to rally, which will feed into higher inflation, this will be very bullish for both the gold and silver markets medium- to long-term.
***KWN has released the timely and powerful KWN audio interview with James Turk and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Legendary Short Seller Says Former Fed Chairman Alan Greenspan Is A Financial War Criminal CLICK HERE.
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