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Levels to watch: gold, silver and crude

Commodity markets are in search of a bottom ahead of an all-important US jobs report. 

Gold bars
Source: Bloomberg

Gold bugs eye weak US jobs report

Gold prices have backed off the intermediate high of $1221 (Dec 1), but a subsequent higher-low at $1143 bodes well for bulls ahead of today’s US non-farm payrolls data, which is likely to spur a flurry of USD activity and thus, gold too.

On an intraday timeframe, gold is trading in the middle of our immediate risk range, which is being seen between downside support at $1146 and topside resistance of $1285.2

Silver to chop higher

Silver has resumed a jerking move higher following a sharp selloff in November. However, with daily price swings remaining relatively shallow it’s indicative of the confidence, or lack thereof in the precious metal.

Much like gold, today’s non-farm payrolls will likely result in heightened market activity in silver and the intermediate risk ranges suggest bulls are continuing to come to the market with downside support at $16.39 with topside resistance at $16.58. If this is broken we could then see an extended move to $16.68.

Oversold Brent could fuel a reversal

A clear bear market remains intact, but for how long? Brent is oversold on a daily timeframe, which is consistent with the market low of $67.55 — a level in which is likely to be used as a stop-loss point for those looking to buy a reversal.

Currently trading at $69.26, having retraced almost 76.8% of the December 1 high of $73.02, markets will look for Brent to take out the $69.64 level to confirm a possible move higher. Should that level be taken out, a move higher to $70.12 and $70.92 will be brought into play.

WTI trapped in a range

US light crude is a similar story to Brent with market sentiment shifting from those unwilling to sell the lows, but tentative of buying a reversal and as a result has been rangebound between $66.28-$67.92. A breaking of either trading range, which results in a close bar below/above, is likely to attract fringe-traders into the market. 

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