Gold continues its descent
Arguably gold is still heading lower, even if the journey is a choppy one. The metal finds itself stuck below the 50-day simple moving average (SMA) at $1193, while stochastics and the relative strength index (RSI) continue to decline. Support still lies around $1180, while a breakout will likely be constrained by $1210 and then the 100-day SMA at $1212.
Silver outlook still bearish
Having spent two days holding above $15.70 the bottom may be in for silver this time, if the price can rally back through $15.90, a turn higher in the RSI and stochastics would signal that a turnaround is in place. For the moment however the picture still leans to the bearish side of things, with a move back below $15.70 suggesting that the March low is still the likely destination.
More upside expected for Brent
After breaking higher yesterday and moving through the crucial $65 level, it looks like there is more to come fro Brent. A fresh target would now be the 200-day SMA at $75.80, although an overbought reading on the RSI is not too far away and should make buyers more assiduous about waiting for dips (ideally using indicators such as the RSI/stochastics on an hourly chart). A close back below $65 would negate the outlook, and put the emphasis back on the $61.80 region.
WTI remains below $58.70
US crude is still stuck below $58.70, so this is the level to watch. A close above here means that it is likely to follow its cousin Brent higher, but a failure to hold suggests the bottom end of this week’s range ($55.60) will be tested. A break below here would open the way to the 100-day SMA at $51.40.