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Levels to watch: gold, silver and crude

While gold and silver have seen selling pause so far this week, US light crude is steadily building gains. However, most of the direction will come from the European Central Bank and non-farm payrolls later in the week.

Gold bars
Source: Bloomberg

Gold could rise to 200-H MA

The selling in gold has halted here for the time being, with $1215 providing support. However, rallies over the past week tended to find resistance around $1222, and even if we see a more sustained bounce in coming days the 20-day moving average around $1237 is going to be a big hurdle.

Once again the hourly chart is showing the steady rise towards the 200-hour moving average. But, pushes through this level have been short-lived and taken as an opportunity for sellers to step back in. Any close below $1215 targets $1200 and then $1195.

Silver eyes $18

Declines in silver are pushing us towards $16.90, which is possible support running back to 2010. The daily chart remains massively oversold, but any rally will still likely run out of steam around the 20-DMA at $18.50. Silver needs to claw its way back to $18 and then retake $18.80 to indicate that the trend direction has changed, if only in the short-term.

Brent gains capped by $97.20 area

The slight declines in oil prices, so far today, mean that Brent crude's downside scenario is still intact. The $96.50 mark is holding as support for the time being, but gains have been capped by the $97.20 area, with the 200-hour at $97.53 also likely to act as resistance, as has been the case so far this month.

WTI could find support at $92

US Light Crude has steadily risen over the past week, with the 50-hour MA providing useful support during this period. The first target on the upside is $93.50, followed by the Friday peak around $93.70. Any drop back below the 200-hour MA at $92.35 would end this current short-term rally and open the way to possible support at $92.  

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