Gold suffers losses
Gold prices are trading at $1,264, up 0.19% on the day following a sharp downside correction on Thursday that saw prices come off its recent high of $1,297 to an overnight low of $1,252. The sharp move lower posted an oversold reading of 20 on its relative strength index (RSI) indicator, which has since resulted in a bounce higher to its current level.
Downside support is likely to be seen at $1,260, and if held is likely to see a move higher to $1,274. However, should downside support be broken then a retest of $1,251 may be seen.
Silver demand begins to wane
Silver is currently trading at $17.02, up 0.17% after suffering a substantial drop during Thursday’s trading session. This saw US jobless claims fall to a multi-year low, bolstering speculation of an impending tightening of US monetary policy, thus seeing a decline in demand for safe-haven assets such as precious metals.
Silver prices touched downside support at $16.74, which has held and seen prices move higher with further upside targets placed at $17.11. If this taken out then a move toward its 50-hour moving average, at $17.50 is possible. Should support fail to hold then a retest of $16.74 is likely to be seen.
Brent aiming for a breakout
Brent prices are trading at $49.71, adding 1.30% following a multi-year drop in the level of US jobless claims, which is indicative of an improving economy and could improve demand for oil.
Price action has pushed through a previous key level of resistance at $49.16, and if this becomes support then a move higher to $50.06 could be seen. However, a retest of $48.19 could come back into play if downside support fails to hold.
WTI breaks key resistance
WTI prices are currently trading at $45.09 having touched an overnight low of $43.58. Price action has pushed WTI above its 50-hour MA of $45.01 which had previously been a key level of topside resistance, and if held could support prices higher to its 100-hour MA of $45.91 – a move supported by its RSI reading of 56.9. The next clear level of support is not seen until $44.35 should downside support fail to hold.