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Gold's bullish momentum stalls
Gold finds itself bouncing along the rising trendline from the lows of 7 May, but a failure to hold ground around $1190 suggests that the short-term bullish momentum has come to an end.
Friday’s spike higher did not last long, and thus we look towards Thursday’s low of $1180 as first-line support. This will be followed by the $1170 area that saw buyers step in during the session on 1 May. Any rally must push through $1190 and then move on to $1200, where the bounce on 5 May stalled.
Silver in similiar situation to gold
A similar picture prevails for silver, with $16.50 proving to be significant resistance on the upside, while dips towards $16.30 have provided support. A move upwards would head towards $16.70, where bounces stalled last week, while the price action from 7 May confirms that $16.20 would be a key area to watch for. A more sustained move would head towards $15.90, the lows of 30 April/1 May.
Brent in retreat
The retreat from $70 for Brent crude is still in progress, and a move below $65 would suggest that we are looking at a more sustained pullback towards $60. An attempt overnight to break the descending trendline from last week’s high was defeated, which suggests the bears are still in charge. Friday’s low around $64.20 should be closely watched, as it marks support from the end of last week and from 29 April.
WTI struggling to break through $59.50
So far $58.50 has been holding up well as support for WTI light, but any move through $59.50 has rapidly run out of steam. Nonetheless the hourly descending trendline from Wednesday’s highs has been broken, which indicates some buying pressure is still present. A move back through $60 would target last week’s highs at $62.