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Levels to watch: gold, silver and crude

A light book of economic data announcements is likely to result in a lack of directional bias in commodity markets today. 

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 in search of downside support

Gold prices are currently down -0.13% and traded at $1,192.6 during today’s London open. With a light economic data calendar it is likely to result in a rangebound trading day for the metal. However, gold prices are currently trading around the intermediate support level at $1,192.2 – which, if held, could see a resumption of the previous bullish trend with a retest of $1,197.1. However, should a close be seen sub-$1,192.2 then the next clear level of resistance is likely to manifest itself at $1,186.

Silver still lacking direction

Silver prices continue to trade in a large range between $15.53 and $16.22; both of which remain intermediate support/resistance ranges that are likely to keep traders on the sidelines before a break of either level is seen. A full close above $16.22 will likely see a retest of $16.64, a move which is currently supported by a reading of 52 in silver's relative strength index (RSI). If price action fails to penetrate said level then a retest of downside support at $15.53 is once again likely to be brought into play.

Brent aiming to end consolidation period

Brent prices appear to be unfolding in a descending triangle pattern which, when completed, could result in a fresh multi-year low from its current level of $59.93 despite rallying, in the short term, off a low of $59.24 (December 26). A near-term bullish trend could continue, but traders should remain flexible in assessing topside targets as the final push higher in a descending triangle, while pointing to a possible retest of $61.30, usually sees a last gasp attempt from bulls before reversing lower, which in this case could point to a possible downside target of $57.67.

WTI targets further upside

A similar story to Brent is being seen in WTI price action, with the latter stages of long-term consolidation appearing to come to an end. WTI is currently trading at $55.22, marginally above the intermediate support level of $53.96, and if held could signal a move higher to the next clear area of near-term topside resistance at $57.
However, with an RSI reading of 42, it is likely that a test of the aforementioned downside support is likely to come first. If a close sub-$53.96 is seen then the next key level to come in to play will be at $53.75.

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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.