Levels to watch: gold, silver and crude

World Bank cuts global growth forecasts for 2015, weighing on oil prices.

Gold bars
Source: Bloomberg

Gold still in vogue despite recent pull-back

Gold prices are currently trading at $1,227, down 0.45% after posting a top of $1,244. This came amid heightened demand for the precious metal following continued risk aversion by the markets as uncertainty regarding global growth increased. This saw the World Bank cut forecasts to 3% from 3.4% in 2015.

Price action in gold failed to rally through the 200-day moving average at $1,245, which remains a significant point of topside resistance. However, today’s pull-back is still supported by gold’s relative strength index, currently trading at 60, suggesting a possible retest of upside resistance. If this broken we could see a move higher to $1,250, and while short-term support has been seen at $1,225 a break below could lead the way to $1,212.

Silver retraces sharply

Silver prices opened lower on Wednesday, currently trading down 2.68% at $16.60, falling back below $16.62 – a long-standing area of consolidation, in a move supported lower by a reading of 35 in its RSI and suggesting further downside could be in store. Should the bearish move continue, the next clear downside target appears to be at $16.52, which if broken could see a fall to $16.45. With demand for precious metals set to increase on the back of global uncertainty, if the bulls step back into the market, silver could retest $16.74.

Global slowdown still weighing on Brent prices

Brent prices failed to break above an intermediate area of topside resistance at $48.19, which has resulted in a move lower to its current level of $47.30. It is down -1.22% on the day after the forecasted slowdown in global growth. Following this the World Bank cut its growth estimates by 0.4% to 3% for 2015.

Any upside in Brent prices is likely to be capped by its 50-period moving average, currently trading at $48.16. If this is broken we could see a retest of $48.80. However, should further downside prevail, which is currently supported by a bearish reading of 47 in Brent’s RSI, then the next clear level of downside support is seen at $45.21.

Unchanged fundamentals leave WTI susceptible to further downside

WTI is down -0.91% after touching a high of $46.76 on Tuesday and is currently trading at $45.56. With no significant turnaround in global demand relative to the surplus supply in oil, price action remains bearish. This is supported by a reading of 44.2 in its RSI.

Intermediate downside support in WTI is placed at Tuesday’s low of $44.35, and if broken we could see a fresh low of $43.30. However, if support is found, a retest of $46.72 could be seen with further upside targets at $47.01.

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial.