Levels to watch: gold, silver and crude

Chinese numbers this morning were good but not great, and this has increased the propensity for traders to favour the US dollar over raw materials.

Gold bars
Source: Bloomberg

Gold still around $1160 region

A wide trading range on a daily basis on gold has, over the past three sessions, resulted in only a modest change in the price. We still sit around $1160, refusing to go below $1154 and not particularly keen on breaking above $1162.

The current bands to look for are $1154 on the downside and $1180 on the upside, with a close below the former targeting $1140 and one above the latter pointing us in the direction of $1200.

Silver remains rangebound

The same can be said of silver, which has failed to move out of a trading range defined by $15.50 on the downside and $15.80 on the upside.

The price has clambered out of oversold levels, but a close above $16 is needed for any change of further gains in the direction of $16.50.  Any drop below $15.50 would open the way to a test of the November lows just above $15.

Brent loses $82 support level

Brent has tested new multi-year lows today, as the $82 support level recedes into history.

So far the positive divergence on the daily relative strength index is having little effect, and a break of the vital $80 level would mean that oil is in a very different world to the one it occupied just a few short months ago.

The 100-hour MA continues to act as potential resistance, with any break beyond this targeting the 10 November high at $85.

WTI gains capped by 100-hour MA

Buyers in US light crude continue to defend the $76.50 support zone, as they have done throughout the month so far.

As with Brent, the 100-hour continues to hold back upside progress, but a break through here would head towards first resistance around $79 and then $79.80.

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