Levels to watch: gold, silver and crude

While precious metals mark time as they debate their next move, oil prices continue to feel the impact of bearish sentiment.

Silver bars
Source: Bloomberg

Gold eyes $1140

The metal continues to stabilise after its heavy losses, moving into consolidation mode. For the moment it is not clear whether this will resolve into a move up or down; I would regard a close back above $1110 as a bullish development, at least in the short-term, with a possible target back up towards $1140, the March lows.

If we resolve lower from the current range then the 24 July low at $1177 becomes the target, which would also encounter support from the monthly descending trendline around $1175. 

Gold chart

Silver could move above $15

Gold’s cheaper cousin however continues to be in a downtrend, even if buyers are still defending the $14.50 level with aplomb. Next support is to be found towards $14.40, the lows of 24 July, and then on towards $13.70.

The upside case would be invigorated by a move back above $15, but this would still leave it stuck in the longer-term downtrend, which would provide resistance around $15.35 for the metal

Silver chart

Brent could move to January lows

The break of $55 last week has intensified the downside here. Intraday rallies are becoming increasingly short-lived, but are still there to be sold. So far there is no sign of a turnaround here, and while there may be some support at $52.40, it looks like a move to the January lows is still on the cards for Brent.

Only a move back above $55 reverses this outlook.

Brent crude chart

WTI downside target around $45

For WTI, even the 20-hour EMA (currently $47.22) has been too much, with repeated attempts to move above this indicator defeated.

The move in this commodity has been a near-straight line, and downside targets still lie around $45 and below; only a bounce through and a close above the $50 level would stand even the remotest chance of providing a bullish catalyst, and even that would face the fundamental bearish drivers of rising supplies and weaker demand. 

WTI chart

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.