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Gold could see more losses
With the news full of updates about the slump in gold, the likely event over coming days is a modest rise as the metal works off its oversold condition before heading lower once again. A rally off the lows has taken hourly stochastics back towards the overbought zone, suggesting that as we reach the 50-hour SMA at $1116 upward momentum will stall. I continue to expect further losses here in due course.
Silver runs out of momentum
Silver’s bounce yesterday ran out of steam around $15, and the same looks to have happened today. I would regard the current rally off the lows to be another selling opportunity, with more downside in prospect. It would take a move back through $15.10 to change this outlook.
More downside looks to be on the way here, but first Brent needs to clear $55. At present it finds itself stuck in a range bounded by $55 and $60, so until we have a breakout from there the consolidation pattern is likely to continue.
WTI’s downside bias persists
Here too the downside bias remains, although bears will want to see a close below $50 to confirm that fresh moves lower are in prospect. If we do not see this soon then momentum may shift to the upside, with a target of $55.22 in the first instance (the 100-day SMA).