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26 Jun 2013
Commodities Brief – Precious metals look to rebound after earlier collapse
FXstreet.com (New York) - Commodity prices were dealt a crucial blow earlier, as precious metals collapsed on the heels of sour US GDP.
Gold rebound could commence
The price of gold extended the sharp sell-off towards the 1225.00-1220.00 support area (intraday low), which was the target of a recent downside movement that afflicted the yellow metal. However, at the current levels, the prices are excessively oversold, as seen on RSI momentum indicator – moreover, the RSI is showing a potential bullish divergence, at the key potential support 161.8 extension level. As such, there lies the potential for an upside rebound over intraday basis. At the time of writing, gold prices are trading at USD $1239.19 per oz. Wednesday.
Silver could be a buy on dips
Silver prices extended their bearishness towards the 18.55 support level, heading towards the 161.8% extension level and the descending support. Momentum indicators are showing significant oversold signals over different time intervals and as such, a dip towards 18.30-18.00 could provide a short-term bullish opportunity for a rebound. At the current levels, the price of silver has now moved to USD $18.87 per oz. during US trading.
WTI sideways trading
WTI crude oil was fluctuating in a sideways trade, below the key resistance at 95.75-95.80, while above the cluster of key moving averages. In these moments, WTI crude oil is negotiating a price of USD $95.32/bbl Wednesday.
Gold rebound could commence
The price of gold extended the sharp sell-off towards the 1225.00-1220.00 support area (intraday low), which was the target of a recent downside movement that afflicted the yellow metal. However, at the current levels, the prices are excessively oversold, as seen on RSI momentum indicator – moreover, the RSI is showing a potential bullish divergence, at the key potential support 161.8 extension level. As such, there lies the potential for an upside rebound over intraday basis. At the time of writing, gold prices are trading at USD $1239.19 per oz. Wednesday.
Silver could be a buy on dips
Silver prices extended their bearishness towards the 18.55 support level, heading towards the 161.8% extension level and the descending support. Momentum indicators are showing significant oversold signals over different time intervals and as such, a dip towards 18.30-18.00 could provide a short-term bullish opportunity for a rebound. At the current levels, the price of silver has now moved to USD $18.87 per oz. during US trading.
WTI sideways trading
WTI crude oil was fluctuating in a sideways trade, below the key resistance at 95.75-95.80, while above the cluster of key moving averages. In these moments, WTI crude oil is negotiating a price of USD $95.32/bbl Wednesday.