Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Levels to watch: gold, silver and crude

Gold and silver are supported higher while the bear trend resumes in Brent and WTI.

Oil pipeline
Source: Bloomberg

Bears retake control of Brent

Brent failed to take out a multi-year low of $67.55 on Friday, posting a higher-low of $69.70 which it has since managed to bounce off to its current level of $68.13. However, given the unchanged fundamental story, it remains the downside that is likely to prevail with short-term targets of $67.11 should the $68.37 upside level hold.

Further weakness likely in WTI

Much like Brent, WTI prices remain poised to the downside trading at $64.67 having rallied off its December 1 low of $63.70. With the resumption of the bear trend it is likely that a retest of the aforementioned low will be seen. Immediate risk ranges to the topside are at $64.83, which if a close below is seen could trigger a move lower to $63.56.

Gold bounces off oversold move

Despite a selloff on Friday’s positive US job report gold prices appear to have posted a bottom, and since rallied retracing 50% off the non-farm payroll losses. In order to confirm a bullish pattern, a close above $1,197.1 is needed. Should the $1,197.1 level hold, a retest of the recent high of $1,220.5 is likely with further upside targets at $1,225.2. However, should a close be seen sub-$1,196.9 then the next clear area of consolidation to the downside is at $1,192.6.

Silver holds four-year low

Silver posted a four-year low of $14.42 on Friday, which has since rallied back to $16.35, but with an immediate topside resistance point at $16.38. Bulls will want to see a close above this level in order to sustain a move higher, which if achieved could lead to $16.45 over the short-term. However, should the bull run fail at $16.38 it is likely to retest $16.29.

 

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 Bank S.A. 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.