Gold’s gains capped
Gold prices have ticked lower from a high of $1,238, to its current level of $1,179, on the back of widespread support for the US dollar. Further short-term downside in gold could be realised should expectations be met for a rebound to 1.1% in US Core Durable Goods Orders data, scheduled for release at 1.30pm (London time).
Support/resistance key levels are at $1,200 to the topside, which if broken through could see a re-testing of $1,220. However, should topside support be held then a move back down to levels not seen since November, at $1,160, could be on the cards.
Higher-low bullish price for silver
Silver prices appear to have posted a higher-low of $15.53 which has since rallied higher to its current level of $15.73. This should see the former level now act as a natural area of support for a move higher, if at all. Upside targets appear to be set at $16.15 with downside risk at the higher-low of $15.53.
Brent continues to consolidate
Brent prices continue to consolidate at multi-year lows between $60 and $62.95 per barrel.
The extended decline has resulted in its relative strength index indicator moving into oversold territory, printing a recent low of 20, which has since moved higher to 33.3. Price consolidation will be the continuing theme until a break of the 50 level is seen.
Support/resistance levels are at $60, which if broken could see a move lower to $58.2. However, should a pickup in Brent’s RSI be seen then a re-testing of $62.95 is likely.
Bullish pattern in WTI continues
WTI prices posted a higher-low of $55.34 (Dec 22), which appears to have sparked a short-term rally to its current level of $56.16. Topside resistance presents itself at $56.39, which if broken could lead the way to a re-testing of $57.
However, downside targets remain at WTI’s lower-high of $55.34.