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Gold still in a period of consolidation
Gold bugs should be careful at this point - $1220 has marked the limit of their advance since late March and we are back to the top end of the current price range. Overbought relative strength index (RSI) and extended stochastic readings complete the picture.
If we fail to break higher from here the likelihood is that we will see another move back down to $1180. Consolidation is still the name of the game here.
Silver moving on up
While silver is on a tear this morning, we should be careful about assuming this is the start of a sustained rally. We need to see a firm move through the $17.50 level. This area stymied gains in March and April, while moves above it in February did not last long.
Silver is now overbought on the four-hour RSI for the first time this month, with the three previous instances seeing quick pullbacks. A break higher would target the January high around $18.50.
Brent may begin to dip
Brent crude has remained within easy distance of $70 for a week now, but has shown little inclination to move higher. Any attempt to push through $68 has so far been defeated, so a repeat of this would lend credence to the idea that the next move is down, potentially targeting $64.20.
To maintain the bounce Brent must clear $70, with this event targeting the 200-day simple moving average at $72.94.
WTI to play the waiting game
Indecision reigns in light crude, as the spike higher from Wednesday was knocked back yesterday. The price has so far shown no inclination to break above the 6 May high of $62.57, and little desire to move much below $60. Until this happens, the prudent course is to wait.