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Levels to watch: gold, silver and crude

Another volatile week for commodities has ended but the new one may not offer much succor for those looking for a significant bounce in raw materials prices.

Silver bars
Source: Bloomberg

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.

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