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Gold breaks $1312
Gold has finally broken above $1312, giving hope that further gains on the upside may be possible.
After days of indecision the price is moving upwards, reinforced by a rising relative strength index that has broken through the 50 mid-point, with the MACD heading higher as well.
The target is now the $1320 region, which will need to be broken if gold is to challenge the mid-July highs. Support should continue to be found around $1307, with the rising 50-daily moving average also potential support.
Silver sees $20 resistance
The 100-DMA $20 and the descending July trendline are all conspiring to hold silver back this morning. However, we do have an increase in the daily RSI, which gives some hope of positive momentum. Even so, without a close above $20 silver seems to be condemned to remain in its current trading range of $19.80 - $20.
The intraday RSI continues to rise, but as has been noted before the 200-hour MA continues to act as a significant barrier to any real upside.
Brent turnaround slows down
Another attempt at moving above $105 has been halted so far today for Brent, while the positive divergence on the RSI noted yesterday seems to be more of a slow burn than a sign of a real turnaround.
The hourly chart shows a declining RSI, while short-term attempts to clear the 200-hour MA have been beaten once again. Attention now shifts to yesterday’s lows, just below $103.50.
WTI remains above current trendline
Here we are seeing WTI remaining above its current trendline, providing significant support, while the daily RSI continues to press higher. The next target on the upside is $97.80, and beyond that the $98.50 area.
On the hourly chart we are looking for the price to clear $97.50 and then the 200-hour MA. A rising RSI provides greater reason to see additional upside.