Daily Trade Gold/Silver/Crude Oil/Dollar Index

Commodities Market: Technical Outlook

Gold closed the session lower at $1,276, down $4.14. Currently, gold has formed a lower high and lower low that indicates potential for further downside. The downside target remains intact at $1,267 (200-DMA); where a fall below will target $1,250. However, any upside will face resistance in the range of $1,281-$1,286. The RSI and the MACD are heading down, supporting a negative view. We recommend investors to ‘Sell on Strength’, keeping stop loss above the 100-DMA.

Silver showed negative movement to close at $16.28, a loss of $0.12. Silver is expected to revisit yesterday’s low of $16.23; where a drop below will target $16.11, followed by $15.82. However, any upside will face resistance at yesterday’s high of $16.41; where a break above will kick off the upward correction. The RSI and the MACD have moved down, supporting a negative view. We recommend investors to ‘Sell’ on the higher side, keeping stop loss above $16.41.

Crude oil ended the session lower at $57.40, down $0.83. Oil is expected to test support at the 14-DMA; where a fall below will kick off the downtrend with $56.44 and $54.97 in sight. However, any upside will face resistance at $58.30 (yesterday’s high). The indicators are mixed, supporting a neutral view. We recommend investors to ‘Sell’ below the 14-DMA.

The USD index closed the session at 93.03. The index is currently trading below the 14-DMA that will restrict upside at 93.26; where a break above is needed to refresh upward momentum. However, a fall below yesterday’s low will continue the downtrend with 92.41 and 92.01 in sight. The MACD has improved, while the Stochastic Oscillator has moved down, signaling no clear trading view. We recommend investors to stay sellers below the 14-DMA.