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Gold supported by $1243
The $1250 level still acts as resistance for gold, with yesterday’s move above this level being slowly undone throughout the morning. However, the hourly chart still shows a steady move upwards, underpinned by the 200-hour MA.
Support could be found around $1243 as was the case on Monday, with buyers targeting the area around $1252.70. A steady drop lower in the intraday relative strength index is indicative that the buyers have yet to reestablish control, but a daily close above the 50-day moving average would certainly mark the continuation of the current rally.
Silver could slip to $17.25
Once again $17.50 is holding as resistance, along with the declining trendline that has been a perennial feature of this market since mid-July.
The drop through the 200-hour MA suggests we will see another dip towards the $17.25 area, with further selling likely to see a retest of $17.10, the lows from 15 October.
Brent testing 200-hour MA
Brent crude is testing the 200-hour MA for the first time since the end of September, as it looks to cross over the highs from 17 October. A close through here would lead us on to $88 and then the 20-DMA at $90.50.
Meanwhile a move downwards targets $84.50 and then the 16 October lows at $83.
WTI running out of momentum
US light seems to be running out of momentum around $82.80, which would suggest that this level and the nearby 200-hour MA will conspire to hold down any upside moves. Downward moves would target $81.70, $80.90 and then the psychologically-important $80 level.