Daily Gold/Silver/Crude Oil/Dollar Index Levels

Commodities Market: Technical Outlook

Gold closed the session lower at $1,252, a loss of $2.97. Despite a negative closing, gold has formed a higher high and higher low that indicates recovery trend remains intact. A break above yesterday’s high will target the 200-DMA at $1,268, followed by $1,277. However, a fall below $1,250 will cause the downtrend to resume. The Stochastic Oscillator and the MACD are heading up, supporting a positive view. We recommend investors to ‘Buy on dips’, keeping stoploss below $1,250.

Silver showed negative movement to close at $15.87, down $0.17. Silver is expected to revisit yesterday’s low of $15.81; where a fall below will cause the downtrend to resume. However, any upside will face resistance in the range of $16.11-$16.16; where a break above will target $16.48. The indicators are mixed, supporting a neutral view. We recommend investors to ‘Sell’ below $15.81.

Crude oil ended the session higher at $57.13, up $0.54. Oil is expected to test resistance at the 14-DMA; where a break above will target $58.57, however, any downside will find support at $56.08; where a fall below will extend the decline towards $55.84, followed by $55.14. The RSI has improved, while the MACD is heading down, supporting a neutral view. We recommend investors to ‘Buy’ above the 14-DMA.

The USD index posted a gain of 0.22 points to close at 93.60. The index is expected to trade between the 14-DMA and the 50-DMA that stands at 93.37 and 93.68, respectively. A break above or below is needed for a directional move. The indicators are mixed, signaling no clear trading view. We recommend investors to stay ‘long’ above the 14-DMA.