Oil appears to have run out out of steam once again, following the bullish rally during May, with $104 per barrel once again proving to be a major stumbling block, and as shown on the daily chart with the yellow dotted line.
For gold bugs, 2014 promised so much following its long decline in 2013, which saw the precious metal lose over $500 per ounce. The first quarter of 2014 looked promising with gold recovering $300 per ounce and climbing back to test the $1,400 per ounce level – heady days.
Brent crude oil (BNO, quote) prices climbed as problems in Libya continued and US crude inventory data showed that the nation’s stocks fell last week.
Brent crude oil (BNO, quote) made its way above $110 on Thursday as rising tension in Ukraine raised concerns about supply interruptions.
With May Expiration this week we have little house cleaning to do.
Option Alert Service Signal New Trade Suggestion
Gold (GLD, quote) demand in China dropped off in the first quarter of 2014. Economist are citing the weakness in gift giving of gold bars.
The spot price of gold (GLD, quote) remain basically flat in the pre-market session as it continues to trade near its 2 ½ week high.
As we begin the first full week of trading for May one has to wonder if the old saying will hold true…”Sell and Go Away In May”.
Brent crude oil (BNO, quote) looked poised to end the week with its largest weekly decline in four months.
