Commodities Market: Technical Outlook

Commodities Market: Technical Outlook

Gold closed the session higher at $1,265, up $3.81. Gold is expected to target the 200-DMA at $1,269; where a break above will lead to further gains towards $1,275 (50-DMA). However, any downside will find support at yesterday’s low of $1,261. The RSI and the MACD have moved up, supporting a positive view. We recommend investors to ‘Buy on dips’, keeping stoploss below $1,261.

Silver closed the session higher at $16.15, a gain of $0.05. The upside target for silver remains intact at $16.27, with a chance of later extending towards $16.48. However, any downside will find support at yesterday’s low of $16.08. The RSI and the MACD are moving up, suggesting higher price movement in the near term. We recommend investors to ‘Buy on dips’, keeping stoploss below $16.08.

Crude oil extended the gain to close at $57.97, up $0.38. If the gain continues, the initial target will be at $58.57, which could later extend to $60.11. However, any downside will find support in the range of $57.30-$57.45. The RSI and the Stochastic Oscillator still have room to enter the overbought region, thus suggesting further upside. Investors are recommended to view any downside as an opportunity to ‘Buy’, with risk defined below the 14-DMA.

Decline continued for the USD index as it closed at 92.92, down 0.12 points. Currently, the index has formed a lower high and lower low that indicates that the trend is weak. The downside target remains intact at 92.41, however, any upside will face resistance at yesterday’s high of 93.11. The RSI and the MACD are heading down, supporting a negative view. We recommend investors to ‘Sell on Strength’, keeping stoploss above 93.11.