Levels to watch: gold, silver and crude

A daily look at commodities trading at key levels.

A man walking by oil barrels
Source: Bloomberg

Gold still below $1100

The week opens with gold still stuck below $1100, repeating the pattern of the past two weeks. However, any dip lower is still likely to encounter support at the $1080 level, so these are the two ranges to watch while this consolidation continues. Given the negative commentary surrounding gold we could see a rapid move higher should $1100 be broken, with short-covering helping to fuel a move upwards, perhaps as far as $1140.

Silver lacking upward impetus

The $15 mark continues to be the level that silver must break in order to sustain any rally. To the downside, we look to support around the $14.50 area. For the time being silver remains in a ‘sell the rally’ mode, with little sign of an upward catalyst. Should one materialise, however, then I look to the $15.65 area (the 50-day SMA) as a target. 

Brent at February lows

Another bout of heavy selling today puts Brent at its lowest level since the end of February, with the lows of January around $47.50 still the target. Even the smallest intraday rallies are still there to be sold at present, with a move above $55 being required to put the commodity back on an upward trajectory. 

WTI outlook negative

Bearish pressure is still in effect here too, and with daily stochastics once again crossing over to the downside (albeit at oversold levels), the picture looks bleak. Next support is likely around the $45 level, marking the lows of the year seen in January and March. 

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