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Gold looks to test $1220
Yesterday’s turnaround broke the nascent downtrend for gold, but for the time being the zone around $1205 continues to prove problematic. A close above yesterday’s highs would signal another test of $1220 is on the cards, while a dip lower will need to break below $1180 to put the downward scenario back on track. At the moment the relative strength index (RSI) and stochastics are back in a bullish mood, while on the four-hour chart the index is still holding well above the 50-period exponential moving average (EMA) at $1190.
Silver remains ambiguous
Silver too enjoyed a bounce, but the picture is less clear-cut here. The metal failed to close above $17 and is not making much progress on this objective this morning. For the time being the trading range is $16.50 - $17, so a breakout either side is needed to confirm the direction of the next move.
Brent moves higher
The momentum, what there is of it, remains to the upside here. Brent crude's price is back above the 50-day simple moving average (SMA) at $58.60 and daily readings on the RSI and stochastics are still moving higher. However the 100-day SMA should provide resistance, if we ever get there, while support is likely around the lows of this week at $55.
WTI favours the bulls
US light crude failed to hold the highs yesterday, touching the rising trendline on the four-hour chart which it broke on 30 March. For the moment moves above $50 have been defeated, while any move through this would hit resistance at $52.40. Any move lower will hit support at $47, although as with Brent crude the RSI and stochastics still tend to the bullish side.