Brent crude oil rises on China demand optimism but gold, silver prices remain under pressure

​​​Brent crude oil price rise on China demand optimism ​

​The price of Brent crude oil is on track for its third day of gains on hopes that Chinese authorities would introduce more policy measures to boost economic growth. ​The People’s Bank of China’s (PBOC) easing of its monetary policy on its 1-year loan prime rate to a record low of 3.45% has been interpreted by traders as a step in the right direction with the oil price heading back up towards its early August high at $85.93.

Further up sits the 4 August high at $86.55 ahead of the current August peak at $87.83. ​While the early August and last week’s lows at $82.81 to $82.31 underpin, the medium-term uptrend in Brent crude oil remains intact.

​Gold price continues to slide ​

The one-month decline in the price of gold is ongoing with the mid-March low at $1,886 about to be reached. Further down beckons the March $1,872 to $1,870 price gap. ​The one-month resistance line at $1,894 caps any attempt of a bounce for now, above which linger the minor psychological $1,900 mark and the 200-day simple moving average (SMA) at $1,908. While the precious metal price remains below it, overall downside pressure should remain in play.

​Silver still range trades above its $22.12 June low

​Silver’s decline from its $25.26 per troy ounce two-month high has taken it to a seven-week low at $22.23, to marginally above the $22.12 June low, last week. ​The precious metal remains within its downtrend channel and below last week’s $23.01 high.

While it and the next higher 200-day simple moving average (SMA) at $23.30 cap on a daily chart closing basis, the medium-term downtrend retains the upper hand. ​Only a drop through the June and current August lows at $22.23 to $22.12 would most likely result in a fall towards the psychological $20.00 region taking place. ​