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Levels to watch: gold, silver and crude

Commodity prices are in retreat, with oil particularly hard hit as the OPEC meeting gets underway. 

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.
Gold bars
Source: Bloomberg

Gold could test 200-hour SMA

Having stabilised above $1180, gold is now clambering higher. A bounce may be in the offing during the course of today’s session, thanks to oversold readings in the hourly relative strength index and stochastics, with a first target of $1194, the 200-hour simple moving average.

However, any rally must clear $1200 to be in with a chance of retaking the highs seen in May. A failure to hold $1180 still means we are looking to a test of $1150.

Little chance of a rebound for silver 

Prices are in retreat here however, with little sign that a rebound is about to occur. The $16.60 mark has been crucial support over the past two weeks, so if this holds there is the possibility of a bounce intraday towards $16.83 and the 200-hour SMA.

Downside targets for silver lie around $16.30 and then $15.50.

Brent eyes $62

It looks like the Brent rally of the past week is at an end, having failed to breach $66.

Now the price looks on target to test the lows from the end of May at $62, even if a short-term bounce is possible thanks to an oversold hourly RSI and stochastics. Upside targets still lie towards $67 and then $68, but a turn lower in the daily RSI inclines me towards the downside.

WTI bounce possible

Having dropped below the 50-hour SMA at $60.49, WTI is now on the back foot, but with hourly stochastics oversold a bounce may materialise.

The daily chart still looks positive, the price having bounced off the 14-day EMA ($59.55), so any move back above yesterday’s high at $61.50 should bring momentum buyers back in and prompt a more extended move higher.

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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.