Levels to watch: gold, silver and crude

Gold has failed to see any real push higher from the Greek excitement, but the revival in risk appetite has sent oil rallying.

Oil field fire
Source: Bloomberg

Greek drama fails to push gold higher
Having failed to hold $1200, I am now watching for a break of the 50-day simple moving average at $1194 to signal fresh downside in gold. There is a rising trendline off the June lows, which suggests we may see some support come in around $1180, which would see the price break through the 100- and 200-hour SMAs at $1191 and $1187 respectively.

Alternately, a rally from this point would go on to challenge $1206 and the 200-day SMA, with a close above here targeting the May highs above $1220.

Silver continues to climb
There is still a steady uptrend in silver, supported by the rising trendline off the March lows, along with daily stochastics and the relative strength index that point to a continuation of bullish momentum. We now look for a move above $16.20, with a target of the 50-day SMA at $16.50.

Bears are looking to sell Brent crude
Despite today’s bounce, it does look as if momentum is still to the downside in Brent crude. The price has failed to break through the 50-hour SMA so far, and with hourly stochastics now overbought bears will be looking to sell this particular bounce should we see this indicator roll over. A downside target still lies around $62.50. A break below here targets the low of 5 June at $61.50.

Light crude may break lower
A similar picture prevails here, although US light crude will need to break below the 50-day SMA ($59) to really indicate a bearish move is in progress. Again, hourly stochastics are overbought and starting to roll over, so if we see $59 broken then we look down towards $57.90. 

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