Levels to watch: gold, silver and crude

Gold prices inched higher on Monday taking out the immediate risk range of $1,197.1, and closing the day at $1,203.1.

Silver bars
Source: Bloomberg

Gold continues to improve

This now moves the downside risk range to $1,204, which if held could bring $1,208.2-$1,209.2 into play. However, should a close below $1,204 be seen it is likely a retest of the $1,200 level.

A slow day for in terms of economic data releases, so gold markets are likely to trade in a rather lethargic fashion.

Has silver found a bottom?

Silver has found short-term downside support at $16.38, and if maintained should result in a retest of Monday’s high of $16.46. However, silver will need to post a close above $16.45 in order to sustain a bullish pattern which, if achieved, would signal a move higher to $16.52.

Short-term rally offers downside opportunity

Without any marked turnaround in the fundamentals, it is a question of where the bottom is in Brent as it continues to push lower. The downside risk range on Monday of $67.11 was taken out, touching a daily low of $65.30. The lower risk range has now shifted to $65.56 with an upside target of $67.16. However, the wider bear trend remains intact and should downside targets be broken it is likely to lead to the next area of resistance at $63.53.

WTI rallies into resistance

A similar story in WTI prices, which saw a short-term rally this morning of +0.17% off Monday’s multi-year low of $62.27. Upside resistance is likely to be seen at $63.56 which, if maintained, would signal a turnaround and retest the lows with targets at $61.94.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.