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Levels to watch: gold, silver and crude

Gold prices inched higher on Monday taking out the immediate risk range of $1,197.1, and closing the day at $1,203.1.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Silver bars
Source: Bloomberg

Gold continues to improve

This now moves the downside risk range to $1,204, which if held could bring $1,208.2-$1,209.2 into play. However, should a close below $1,204 be seen it is likely a retest of the $1,200 level.

A slow day for in terms of economic data releases, so gold markets are likely to trade in a rather lethargic fashion.

Has silver found a bottom?

Silver has found short-term downside support at $16.38, and if maintained should result in a retest of Monday’s high of $16.46. However, silver will need to post a close above $16.45 in order to sustain a bullish pattern which, if achieved, would signal a move higher to $16.52.

Short-term rally offers downside opportunity

Without any marked turnaround in the fundamentals, it is a question of where the bottom is in Brent as it continues to push lower. The downside risk range on Monday of $67.11 was taken out, touching a daily low of $65.30. The lower risk range has now shifted to $65.56 with an upside target of $67.16. However, the wider bear trend remains intact and should downside targets be broken it is likely to lead to the next area of resistance at $63.53.

WTI rallies into resistance

A similar story in WTI prices, which saw a short-term rally this morning of +0.17% off Monday’s multi-year low of $62.27. Upside resistance is likely to be seen at $63.56 which, if maintained, would signal a turnaround and retest the lows with targets at $61.94.

 

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.