Gold, WTI crude oil and silver prices start the week with gaps higher
Commodity prices found support last week, and have gapped higher over the weekend following the conflict in the Middle East.

Gold bounce spurred by safe haven buying
Gold rallied on Friday, after consolidating around the $1820 level for the previous three sessions. The weekend’s events have seen the price surge, recouping some of the losses of the past week. A low may well be in, which could see the price move back towards the August low of $1885, with support now becoming resistance. A reversal back below $1830 would counter this view, and might suggest a lower high is in place, and then a close below $1810 might then open the way to more losses, initially to the February low at $1807.

WTI bolstered by Middle East tensions
WTI gapped higher by around 4% on Monday morning on heightened Middle East tensions. If the oil price were to slip to Friday’s high at $84.54, this week’s gap will have been filled with further downside likely to be seen in such a scenario. The 200-day SMA at $91.91, together with the August low at $81.68, represent possible downside targets. Resistance above the 55-day SMA at $87.62 comes in at Monday’s $88.46 intraday high, above which the breached June-to-October uptrend line.

Silver prices gap higher
Silver prices also enjoyed a strong day on Friday, moving back above $21. This seems to have established a low for the time being, but now it is up to the buyers to maintain momentum. The initial target becomes the summer support zone around $22.40, while beyond this gains target trendline resistance from the late August high. A reversal back below $21.50 could spur a fresh leg to the downside, challenging last week’s lows.

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