The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Gold eyes $1153
The big bounce from Friday in gold price has taken the metal right back to the $1180 resistance level and the 200-hour moving average. Having been sharply overbought last week the metal has now dropped back from this condition, and while $1170 is holding as support for the time being a break below would put us on course for $1164 and then $1153.
A successful daily close above $1180 would mean that there is still a possibility that gold will retest the 50-day moving average at $1220. The $1140 level is still extant as potential support should $1153 be broken.
Silver could find support at $15.50
Even with its bounce on Friday, silver is still oversold this morning with buyers so far unable to push the metal through Friday’s close. With momentum indicators pointing higher a bounce is likely, with a target being the inevitable July downtrend at $16.40.
For now $15 is holding as support, with any drop lower targeting this as a major level. A rising 50-H MA may do its best to provide support around $15.50, with a first target in coming days being the 200-H MA at $16.05.
Brent struggles to break 200-H MA
An interesting set of circumstances has arisen here. The hourly chart is flashing an overbought reading while Brent's price struggles to push through the 200-H MA. The 50-H MA is mounting a bullish crossover of the 100-H MA too. Intermediate resistance could be found just above current levels at $84.70, but if this is broken we target the 3 November highs around $86.20.
A drop back below the 200-H MA would point towards $83.10, the 50-H MA, as first-line support, followed on by the lows of last week at $82.
WTI RSI overbought
US light crude is pushing above the 200-H MA this morning as well, with the intraday relative strength index overbought too. A continuation of this move upwards targets $80.95 and then $81.25, while a rising trendline from the 4 November lows means that rising support could well be found around $78.40.