Levels to watch: gold, silver and crude

Oil markets remain quiet, while precious metals are still unable to make much headway in either direction. 

Gold bars
Source: Bloomberg

Gold likely to be stuck in a long-term downtrend
The ugly price action in gold on Friday bodes ill for those planning for a rising gild price. The big level to breach is still $1180, as it was all the way through last week. For now even $1170 looks to be providing problems for any upward momentum. A break through $1180 would allow the price a run at the 14/15 October price at $1191.

If the price continues to decline then we look towards the 50-day simple moving average at $1140, at which point buyers may be able to muster some momentum. In the longer-term, it looks like the downtrend in gold will continue to prevail.


Silver attempts to rally
Silver remains trapped below the 200-day SMA ($15.96), although it is doing its best to rally this morning. While the $15.66 level holds there may be a chance of pushing back towards $16.20.

A breakout from the October highs would signal a move towards $16.80. If the price fails to hold $15.66 then the next area of support becomes $15.20 and then $14.70 below this.


Brent bouncing back and forth
After spiking higher earlier in the month, Brent crude has returned to its September habit of bouncing along close to $48. We really need to see a daily close back below $46.30 to suggest that downside momentum is building, but for the bulls even a move back towards $50 is not guaranteed to bring significant movement. For that, we need a close above $50.70, which would at least clear the way to the 100-day SMA at $53.07.

Brent crude

WTI in flux
A similar situation applies here, although in US light crude’s case $44 is key support. The bulls need a form close above $48, which might then allow for a run to the October high at $50. 

US light crude

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