Oil and precious metals

Posted: December 13, 2016 in Uncategorized

Oil is skyrocketing higher on the deals made from the OPEC.

The issues with OPEC deal is that, in OPEC history, no deals has been maintained for more than a few months.

There are too much money and too much cash starvation (think about Saudi with wars in Yemen and Syria; Russia with wars in Syria and Ukraine, Iran with wars in Iraq and Syria, Venezuela bankruptcy).

Plus Russia cannot close its oil rigs otherwise they freeze, US and Indonesia are non -OPEC and the US still has the shale oil an Trump wants to increase oil production.

So oil will tend to go towards USD60 and probably overshoot to USD$65, but then stay trapped between USD40-USD60.

Gold is weak and it will keep on being weak targeting USD1,060 until the Trump honey moon works (probably a month or two after the 20 January). Then, with the unpredictable 2017, it will ramp up t least to USD1,380. If that super resistance is broken, USD1,550 is a matter of fact.

On that vision silver has even a better prospect having a base at USD14 and a target at USD28.

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