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$1180 level supporting Gold
The $1180 low on gold has been a prime area of support on several occasions now. So technical buying, along with the Federal Reserve message, has enabled prices in the precious metal to rise even further and we are now seeing gains for the fourth consecutive day. The $1230-4 level is important and we have tested it this morning already. If breached, the price of gold could rally up to test the 50-day moving average at $1258. While below here, the risk is for a move back towards $1215. Any moves back through $1180 on a daily close would result in a swift move to the downside.
Silver finds a base
Silver has also found a base around the $16.67/oz marker but looks likely to run out of steam at $17.60-70 – this is the falling trendline resistance from the highs seen all the way back in May 2011. A move through here would be rather bullish and would support a swift test of $18.00 in the short term.
The confluence of the three major MAs on the hourly chart should provide a semblance of support around $17.30. Below that lies $17.06.
Brent below $91.38
Oil prices have not felt the benefit of the weaker dollar and continue to languish in the doldrums. Brent is now trading below $91.38/bbl – we have not seen a weekly close through here since November 2010.
Weekly chart is looking very oversold but as long as prices remain below $91 then the $88.50 looks like a likely target. The 50-hour MA is the metric to watch as it continues to be a barrier to upside. A move back through $91.76 could see a squeeze higher towards $93.