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21 May 2013
Commodities Brief – Gold rally capped at 1399, precious metals shed overnight gains
Gold prices jumped yesterday, forming a major bullish engulfing candle and indicating an upside rebound. Ultimately, a retest of the minor descending trend seems imminent, as break above the trend line shall clear the way towards another test of 1478.00 resistance area. An extension higher to the 1390 level will lend strength to the recovery movement, which has thus far been few and far between over the past week. At the time of writing, the price of gold is now trading at USD $1380.08 per oz. Tuesday, after capping at the 1399 level earlier today.
Silver upside valid
The white metal outperformed gold yesterday after dipping sharply lower towards 20.00 mark. Silver rebounded strongly to close the trading session higher back above 22.00 support level, forming a gigantic bullish hammer candle. The strong rebound suggests solid bullish momentum, and a potential upside rebound within the upcoming period. However, European trading has seen a gradual waning in spot prices, following a movement off of intraday highs (22.88) to USD $22.47 per oz. in these moments.
WTI eyes pivotal 96.90 resistance
Last week, the commodity failed to maintain the bearish bias to rebound strongly after forming a major bullish hammer candle at the 200.day SMA, where it could be heading to resume the bullish wave. However, a clear break above the previous highs near 97.00 level, in addition to the falling trend line is required to confirm an initial move to 100.00 area. As such, the crude is presently negotiating a price of USD $96.51/bbl.
Silver upside valid
The white metal outperformed gold yesterday after dipping sharply lower towards 20.00 mark. Silver rebounded strongly to close the trading session higher back above 22.00 support level, forming a gigantic bullish hammer candle. The strong rebound suggests solid bullish momentum, and a potential upside rebound within the upcoming period. However, European trading has seen a gradual waning in spot prices, following a movement off of intraday highs (22.88) to USD $22.47 per oz. in these moments.
WTI eyes pivotal 96.90 resistance
Last week, the commodity failed to maintain the bearish bias to rebound strongly after forming a major bullish hammer candle at the 200.day SMA, where it could be heading to resume the bullish wave. However, a clear break above the previous highs near 97.00 level, in addition to the falling trend line is required to confirm an initial move to 100.00 area. As such, the crude is presently negotiating a price of USD $96.51/bbl.