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Levels to watch: gold, silver and crude

Commodity prices are in retreat, with oil particularly hard hit as the OPEC meeting gets underway. 

Gold bars
Source: Bloomberg

Gold could test 200-hour SMA

Having stabilised above $1180, gold is now clambering higher. A bounce may be in the offing during the course of today’s session, thanks to oversold readings in the hourly relative strength index and stochastics, with a first target of $1194, the 200-hour simple moving average.

However, any rally must clear $1200 to be in with a chance of retaking the highs seen in May. A failure to hold $1180 still means we are looking to a test of $1150.

Little chance of a rebound for silver 

Prices are in retreat here however, with little sign that a rebound is about to occur. The $16.60 mark has been crucial support over the past two weeks, so if this holds there is the possibility of a bounce intraday towards $16.83 and the 200-hour SMA.

Downside targets for silver lie around $16.30 and then $15.50.

Brent eyes $62

It looks like the Brent rally of the past week is at an end, having failed to breach $66.

Now the price looks on target to test the lows from the end of May at $62, even if a short-term bounce is possible thanks to an oversold hourly RSI and stochastics. Upside targets still lie towards $67 and then $68, but a turn lower in the daily RSI inclines me towards the downside.

WTI bounce possible

Having dropped below the 50-hour SMA at $60.49, WTI is now on the back foot, but with hourly stochastics oversold a bounce may materialise.

The daily chart still looks positive, the price having bounced off the 14-day EMA ($59.55), so any move back above yesterday’s high at $61.50 should bring momentum buyers back in and prompt a more extended move higher.

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