Levels to watch: gold, silver and crude

Commodity prices have stabilised after the Federal Open Market Committee minutes, although gold remains stuck below $1200 and oil is looking weak once more.

Oil pipes
Source: Bloomberg

Gold supported by $1180

Gold remains stalled and unable to recover the highs of earlier in the week, thanks to Fed minutes that showed there was no real argument over the end of QE3. For now the price remains supported around $1180, buyers having stepped in this morning. Some brief excitement around a Swiss poll regarding the upcoming referendum on gold reserves saw the price dive and then leap up yesterday, but this volatility aside gold is still moving higher in the short term.

Silver could slip to $15.90

We actually saw a brief spike for silver through the July downtrend line yesterday, but that was quickly knocked back. The price is testing the water around the line once again, with a close above it targeting $16.40 and then yesterday’s high at $16.60.

Meanwhile support has so far been found at $16, while a break below here could take us back to the 200-hour MA at $15.90. A move lower than that carries us back to the Friday lows sub-$15.40.

Brent gains capped by 50-hour MA

With oil prices under pressure once more the bears may be able to force a second test of the lows from last week around $77. Gains to the upside may be capped at the 50- and 100-hour MAs, which are both sitting around $78.60 for the time being. A further move upward will likely find resistance at $80.

WTI steadily moving lower

US light crude has been steadily moving lower in recent days. The first target is the Wednesday low at $74, followed by the Friday low just below $73.50.

Any move upwards will need to break $75.20 and then head towards the 200-hour at $76.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.