Commodities' prices continue their rally towards new high.

Oil hit yesterday a new high at 104.95 $, pushed by a likely supply cut by OPEC due to a potential oil demand reduction in the close future. We expect it to trade higher again and to move to 107 $ per barrel. A weaker dollar and speculation will manage the rise of crude prices for the next days.

Gold hit a new record level yesterday, again pushed by a weak dollar and by super inflation concerns. It is well known that Gold represents a safe harbour against an inflation storm. It seems now that more and more ships are docking there. The 1000 $ barrier will be forced soon, a weaker dollar will take the gold to a 4 digit figure by the end of the week.

Today the ECB policy makers will meet to decide on whether reduce its main lending rate or not. Everybody expects they will not make any cut, so we are ready to see the dollar at 1.55 vs Euro.

Since our update last week, the Gold Composite Future has moved within the range indicated (895-935 $ an ounce). The red trend line together with the support at 895 $ have firmly supported the future, that is now trading trough new highs. We expect it to break the historic high at 936.85 $ an ounce.

Hold the position opened at 895 $.

First Resistance set at 937 $.

Gold moved higher today after yesterday's interest rates cut, but a weak oil limited the movement and prevented the metal from breaking its record highs.

Analysts reckon the metal, which has already risen 12 percent this year on top of a 32 percent rush last year, had become susceptible to sharp sell-offs.

Spot gold hit $923.10 an ounce from $921.10/921.80 on Wednesday, when it rallied to $932.00 - just below Tuesday's all-time high of $933.10 - after the U.S. Federal Reserve cut interest rates.