Technical analysis: key levels for gold, silver and crude

There seems little that can arrest the decline of precious metals, but there is finally some upward movement in oil. 

Silver bars stacked orderly
Source: Bloomberg

Gold’s decline persists

Losses continue here, as the price hurtles towards the $1100 level, with the potential for some support around $1110. A break through $1100 targets the July/August lows at $1080. Any bullish resurgence needs to clear the $1140 area (around the 50-day SMA), to even suggest that this pullback has run its course.

Gold chart

Silver could test rising trendline

Aside from some support around $15.20, it looks increasingly like silver will test the rising trendline off the August lows, which is likely to see a possible bounce around the $15 mark. Silver needs to move firmly back above $15.60 to be in with a chance of reversing the current pullback from around $16. 

Silver chart

Brent targets close above $51.30

The move back above $50 will be the signal for some cautious optimism among bulls, but the price needs to push on and clear the $51.30 area to begin with. A close above here would allow traders to contemplate a move back to $54, although this still seems quite a tall order. A close back below $50 would suggest the sellers are back in charge, with the price potentially moving back to the $47.40 area.

Brent chart

WTI likely to continue higher

Steady gains here have stalled for now just shy of $48, but it seems likely that the move is going to continue, with a possible move all the way to $50, the high from the beginning of the month. The upward move is only really imperilled if the price gets back below the 50-day SMA around $46. 

WTI chart

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