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Gold prices remain depressed
Gold prices are trading at $1,237, down 0.14% from its previous close level on Tuesday after testing and failing to breach topside resistance at its 50-hour moving average. As a result price action has seen a reversal – a move supported by a contractionary reading of 38.3, which could see downside support at $1,233 brought into play.
Should downside support fail to hold then the next clear level of support is likely to be seen at $1,226. However, if support holds then price action may retest topside resistance at $1,242.
Silver reverses gains
Silver prices are trading at $16.85, down 0.95% as market risk bias continues to favour a risk-off approach. This has resulted in safe-haven assets, such as precious metals, heading lower in favour of pro-risk asset classes.
Tuesday’s move has seen a move below the last clear level of support at the 50-hour MA of $16.95, which is now turning into resistance that could result in another move lower – supported by a contractionary reading of 37 in its relative strength index (RSI).
The next clear downside target is likely to be seen at $16.74, which if broken could see a retest of the February 6 lows of $16.56.
Brent takes out previous high
Brent is trading at $59.09, adding 0.53% so far having taken out a previous high of $58.98 from February 03. This could now act as an area of downside support, and if held could lead Brent prices higher with upside targets placed at $60.24 – a move supported by a bullish reading of 60.7 in its RSI.
However, should price action reverse back through the $58.12 level then this could be a sign of either a short-term pullback or a complete reversal. Sustained moves lower could see downside targets of $57.45 and $56.41 come into play.
WTI supported higher
WTI is down 0.47% on Tuesday, currently trading at $52.25, having touched an overnight high of $53.96.
The downside move is likely to go in search of support at either the $51.28 level or the 50-hour MA at $51.22. Should downside support hold then a retest of topside resistance at $53.96 is likely – a move supported by a bullish reading of 53 in its RSI. However, a move lower is likely to bring the 100-hour MA into play.