Levels to watch: gold, silver and crude

USD regains support, which has pushed commodities onto the back foot.

Gold bars
Source: Bloomberg

Resurgent USD weighs on gold prices

The US dollar has regained some strength following Tuesday’s weak performance, which has since seen gold prices come off the recent high of $1,210 to its current level of $1,1987. Downside support presents itself just below its current trading price at $1,197.1 – which has already seen a break below, but with no close below as yet one can assume it’s still an area of support. Should $1,197 hold then a retest of its upside resistance at $1,200-1,204 could be brought back into play.

Silver aiming for a breakout

Silver prices broke through its upside band of consolidation on Tuesday at $16.29. It then went on to rally up to its recent high of $16.47 before retracing back through support to its current level of $16.18, trading marginally higher from its downside support level of $16.15. Should support hold at $16.15 then a retest of the $16.29-16.38 region may be seen. However, if a close sub-$16.15 is seen then the next area of downside resistance appears to be at $16.07.

Brent posts fresh multi-year low

Brent has moved higher off its multi-year lows of $56.26, currently trading at $56.46 with possible downside targets of $55.90. However, with the current move entering oversold territory on an hourly timeframe, it’s likely that a short-term pullback will be seen. It could then re-test the $56.74 level before resuming the previous bearish trend.

WTI fails to break support

WTI rallied into support overnight, touching a high of $54.33, but given price action failed to post a close above the $53.96 level it remains a bearish set-up, with downside targets at $52.96 should the aforementioned support level hold. 

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