Levels to watch: gold, silver and crude

Gold and silver seem to have found support in the short-term but oil prices look under pressure once again. 

Mining truck
Source: Bloomberg

Gold could target $1200

A weakening of the dollar has allowed gold to clamber off yesterday’s lows, and with momentum indicators on the four-hour chart we may continue to see a short-term bounce that will carry us back in the direction of $1200.

Although the price did not reach the $1180 level it did still bounce from the bottom end of its trading range of the past two months, with a first target of $1200 and then on to the 200-day simple moving average at $1213.

Silver could test $16

A similar picture prevails in silver, where a test of the zone around $16.60 has brought out the buyers once again. Having found support around the 50-day SMA ($16.63), the price may now be able to push on higher, even if momentum indicators do remain bearish.

A clearance of the 200-day SMA at $16.90 would be a good first step to changing the direction of the trend, but a failure to maintain the move higher would see the price move further down and test $16.20 and then $16 itself.

Brent eyes 100-day SMA

The $62 mark has stemmed the selling here for Brent, with the result that we may aim to push back towards the $64.80 area, having bounced off the 50-day SMA at $61.88. A failure to continue the rally would result in another test of the $62 support zone, before moving on to the 100-day SMA at $58.80.

WTI could drop to $52.18

Having fallen through $58, WTI now looks minded to keep on going lower, assuming it can break below yesterday’s lows of $57.50. A rising 50-day SMA at $55.52 is still first-line support, with a break through here heading towards the 100-day SMA at $52.18. 

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