Commodity Contract S2 S1 R1 R2

Gold was higher today as equities continued to slide while U.S. lawmakers remain deadlocked over the government shutdown and the debt ceiling debate. Gold opened at 1318.50/1319.50, touched a low of 1316.50/1317.50 before jumping to a session high of 1329.00/1330.00 around midmorning. The metal closed at 1324.50/1325.50.  

Gold closed higher today at 1324. Support is at the recent low of 1277 from October 2. Resistance is at the recent high of 1375 from September 19. We are currently neutral, but would view it as a positive development if gold holds key support at 1273.

Gold rose as U.S. government shutdown dragged on and a deadline to raise the national debt ceiling loomed.

The United States faces an Oct. 17 deadline to raise its $16.7 trillion debt limit.

The budget impasse that has shut down parts of the U.S. government entered its second week and still looked set to continue.

Silver also traded higher on the day. After trading sideways overnight, silver opened the week at 21.89/21.94. Price bottomed at 21.88/21.93 early on, before advancing to a high of 22.45/22.50 as investors fled to safety. The metal closed the day near the high, at 22.35/22.40.

Silver closed higher today at 22.35, breaking through congestion in the low 22's to reach a new 2 week high. Price action since the June 28th low at 18.23 is consistent with silver having formed a bottom; however, it is too early to make this conclusion. Resistance is at the recent high of 23.42 from September 19th. Support is at the recent low (from October 1) at 20.62.

The gold-silver ratio had a bearish move today, closing much lower at 59.28. The next support is 58.86, which is the 50% retracement of the November to August uptrend. We are bearish the ratio, targeting a full retracement to 57.09, the low from August 2013.

Silver fluctuated near highs as the U.S. moved closer to a deadline to raise the national debt ceiling or risk default.

Investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1.

Traders will be looking ahead to Wednesday's minutes of the Fed's most recent policy-setting meeting for further clues.

On the Comex division of the New YorkMercantile Exchange, copper futures for December delivery traded at USD3.311 a pound during European morning trade, up 0.45%. 

Copper prices held in a range between USD3.287 a pound, the daily low and a session high of USD3.314 a pound. The December contract settled 0.14% lower at USD3.296 a pound on Monday.
Copper prices were likely to find support at USD3.258 a pound, the low from October 4 and resistance at USD3.324 a pound, the high from October 3.

Copper futures edged higher on Tuesday, as investors speculated demand for the red metal will pick up as markets in mainland China re-opened following a week-long holiday.

Copper gained as investors speculated demand will pick up as markets in mainland China re-opened following a week-long holiday.

Chile will produce about 5.7 million tonnes of copper this year, an almost 5 percent increase on last year and a historic high.

The IMF trimmed its projections for global economic growth, citing deteriorating growth prospects in emerging markets.

On the New York Mercantile Exchange, light, sweet crude futures for November delivery rose 0.15% to USD103.65 per barrel in Asian trading Wednesday. The November contract settled higher by 0.45% at USD103.49 per barrel on Tuesday.

Analysts expected gasoline supplies to increase 1.3 million barrels and expected a drop of 1.9 million barrels in distillates. The U.S. Energy Information Administration is expected to release its weekly supply report despite the shutdown later today.
Oil may also be getting a lift on media reports that President Barrack Obama will nominate Federal Reserve Vice Chairwoman Janet Yellen to lead the U.S. central bank when Chairman Ben Bernanke retires early next year.

Oil futures traded modestly higher during Wednesday's Asian session despite data from the American Petroleum Institute that showed an increase in inventories in the U.S. last week.

Crude rose as investors looked ahead to the release of key U.S. weekly supply data amid ongoing uncertainty over the U.S. government shutdown

The supply of North Sea crude that underpins the benchmark is set to reach a 2013 high in November.

Today crude oil inventories: EXP: 0.9M PREV: 5.5M. Actual is at 8.00PM

FOMC Meeting Minutes