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Global growth concerns boost gold
Gold prices added 2.49%, posting a daily high of $1,238 following a widespread pull-back in the US dollar, as concerns regarding global growth come back to the fore. The move has since retraced back down to $1,229. On a daily chart, the move still represents a lower high – suggesting further downside. However, should a downside resistance level of $1,225 hold there could be further upside to come, of which projections of topside resistance appear at $1,239. If the $1,225 level is breached, the next key level resides at $1,219.
Possible ceiling in silver
Silver prices also rallied in line with a global shift in risk sentiment, but failed to sustain a move through a key level of $17.11, which coincided with an overbought signal in the instrument’s relative strength index of 76.7. The move to $17.06, off its high of $17.24, could see further downside, which could reach a short-term target of $16.91.
Deflation concerns continues to hamper oil
Brent prices consolidated on Tuesday, around $66.74 and $66.40, after rallying off a year-to-date low of $65.30 posted on Tuesday. Should the $65.56 level hold, a move higher could be seen with upside projections at $67.16. However, if this is breached it could result in a retest of the yearly lows with a further downside target of $63.53.
WTI back to 2009 levels
WTI prices returned to levels not seen since 2009, currently trading at $62.63 and just off the year-to-date low of $62.25. Tuesday’s consolidation around the $63.65 level makes it a good candidate to signal topside resistance, which if held could see a downside target of $62.05; a close below it could lead to $60.02. However, a close above the $63.65 level could see a move higher to $64.91.