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Gold pushes towards $1200
It has been a tough slog, but gold appears to be on the cusp of reaching the $1200 mark. A close above here would head towards the 200-day SMA at $1206, and then on to the May high of $1232. Intraday pullbacks should continue to be bought, especially while daily momentum indicators remain bullish.
Downside moves should find support around $1180, and then $1160 should a more serious retreat develop.
Silver races higher
As gold goes, so does silver, with today being no exception. Having seen the price finally break out of the recent tight range, finding strong support along the rising trendline from the March lows. Now we look for the rally to sustain itself and clear the $16.50 area, backed by steadily rising relative strength index and stochastics.
Having broken out of a descending triangle, we look for bullish momentum to continue and predominate.
Crude prices have spiked higher, helped along by a weaker US dollar, but while this may be bullish, we need to see a close above yesterday’s highs to maintain upward momentum. There have been plenty of false dawns in this market, so I await a move through the $68 level and the 200-day SMA at $68.15 to turn firmly bullish for Brent.
Again, WTI finds itself bumping up against the top end of its recent range, namely the area close to $61 which has blocked progress higher since the beginning of May.
A rising 50-day SMA ($59.40) continues to provide support, but as with Brent I am still waiting for the key breakout in order to initiate longs.