USD rebound caps gold’s gains
Gold prices are trading at $1,213, down 0.33% on the day. This is most likely a short-term pull-back following a sharp move higher that resulted in an overbought reading on Tuesday. However, the bullish trend remains, receiving support from its 50-, 100- and 200-day moving averages.
It is likely the pullback will test the intermediate downside support which resides at the 50-DMA, currently trading at $1,208. Should this downside target hold then a retest of $1,215 is likely.
Silver sees sharp correction
Silver is currently trading at $16.31 after touching a high of $16.71 yesterday. A bullish trend in both global stocks and the US dollar is likely to be the catalyst behind this move, with investor sentiment rebounding in favour of a risk-off bias.
The move lower has reached intermediate downside support at $16.29. If this support holds then we could see a retest of topside resistance at $16.38.
Brent prices rally with bullish stock sentiment
In line with a more positive view toward global risk sentiment, Brent prices picked up, pushing to a daily high of $51.70 after posting a multi-year low of $49.66 on Tuesday. Its relative strength index, however, remains in contractionary territory, currently trading at 45 and could well be indicative of a possible downside correction. Intermediate topside support is placed at $52.26 – which, should prices fail to break above, could see a retest of downside resistance currently placed at $49.16.
WTI prices edge higher
WTI prices have ticked higher by 0.47%, currently trading at $48.17 having touched a multi-year low of $46.82. The sharp move to the downside registered a deep oversold reading of 16.8, and has subsequently resulted in a move up to 34.4. Despite seeing prices move higher, the current strength of the move remains in contractionary territory.
The low of $46.82 is in line with intermediate downside support and is likely to be retested should the current rebound hold at topside resistance, currently trading at $48.92.