Levels to watch: gold, silver and crude

The equity rally has left commodities unloved once again, with the sector losing ground after a week of heavy losses.

Gold bars
Source: Bloomberg

Gold upside capped by $1220

We are seeing gold pushing back to the lows of the week, and any break of the $1205 area opens the way to the $1190 area, which may be potential support.

Gains to the upside continue to be capped by the $1220 area and then the 20-day moving average at $1225.

Silver testing $17 level

The $17 level is being tested once again on the silver chart, and the weekly chart suggests that a break of this level would target $16.05. Momentum indicators have yet to suggest any turnaround is in progress, but even a rally is likely to be halted by possible resistance at $17.15 and then $17.50.

Brent could find resistance at 20-DMA

The week’s lows of $91.50 are holding, which might point to some buying as the new week gets underway. However, any modest oversold bounce for Brent is still likely to see resistance around the 20-DMA at $97.26, with a longer-term move targeting the key $100 mark.

WTI finds buyers

The hourly chart showed that buyers have stepped back in around $90.60, and then the first target is the 200-hour MA at $92.16. A close through here then suggests a move back to the month highs around $95.

Any drop lower for the commodity targets the $90.40 area, but the downside momentum appears to be receding for now.

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