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Gold bulls back on track
Gold prices have added +0.51% having rallied off a short-term low of $1,179 to its current level of $1,188 on Tuesday, taking out Monday’s topside area of resistance level of $1,186 – a level which should now become an area of support in search of a move higher to $1,192.2. This is supported by a move into expansionary territory in gold’s relative strength index, which is currently at 51.3. Should expectations for a move higher to 93.2 in the US consumer confidence data be missed, then further upside in gold could be seen.
Silver remains muted
A continuation in the consolidation of silver prices has continued into Tuesday – albeit seeing a lower high posted at $15.73 on Monday. This could signal a possible breaking of topside resistance at $16.15, in which a close above the aforementioned level would need to be seen as confirmation of a bullish pattern. If this is achieved we could see $16.29 taken out.
Brent bears continue to add downside pressure
Brent prices broke sharply to the downside overnight, touching a low of $56.73 before retracing back up to its current level of $57.29. The move saw Monday’s intermediate downside level of $57.67 taken out, which should now become support in search of further downside. If that level is held then the next clear downside target is likely to be seen at $56.
WTI breaks long-term key support
WTI also broke down through key support at $53.96, which should also now become an area of resistance. Prices are currently trading at $53.26, and if the intermediate topside target of $53.96 is held then a possible move lower to a multi-year low of $52 could well be seen.