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Hansen: While crude tanks, gold and silver shine

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If you didn’t think crude could fall much lower, this week it did. WTI has been trading at under 60 dollars a barrel with Brent also falling to a 5 year low. Saxo's Ole Hansen says the moves lower are still in response to the price negative news coming out of OPEC.

Hansen notes that there hasn't been much of a correlation between the dollar and energy prices. But if the dollar weakens, he says it could help stabilise the oil market. However, he says "we need to look for supply destruction" and that will focus on the US. If Shale companies struggle to refinance due to cost, there could be some scaling back, he says.

Ole Hansen says that while momentum will remain negative having already fallen 20% since the OPEC meeting in November, volatility is running high. He says traders will continue to sell into any market strength.

It's been a pretty negative week for commodities but gold and silver have shone. Hansen believes gold is finding support from the dollar. There is a potential move towards 1245 per ounce, even 1255 oz but he says there's a need to see new longs coming into the market. "Buy on dips looking for a mover higher," he concludes.