Federal Reserve Statements Give Bulls the Upside Momentum

Crude oil closed up $1.49 a barrel at $88.76 today. Prices closed near the session high today and hit a fresh three week high as the bulls gained some more upside technical momentum today. Prices have been trending higher for three weeks. Today, the crude market got a boost when a U.S. Federal Reserve governor hinted at more quantitative easing, which would be bullish for commodities.

Natural gas closed up 8.4 cents at $3.914 today. Prices closed near the session high today and did hit another fresh contract low early on. Short covering in a bear market was featured. Bears still have the solid near term technical advantage. The next upside price breakout objective for the bulls is closing prices above solid technical resistance at last week's high of $4.024.

Gold futures closed up $37.40 an ounce at $1,829.00 today. Prices closed nearer the session high today and saw bargain hunting and some fresh safe haven buying interest after a U.S. Federal Reserve Board governor said he wanted aggressive easing of monetary policy by the Fed and was worried about the U.S. economic recovery.

The gold bulls have made a strong recovery from last week's spike low on the daily chart, to suggest last week's low will become a "reaction low" on the daily bar chart. If prices can continue to work sideways to higher in the near term, then bulls would gain confidence the uptrend on the daily chart has been restarted.