Daily Trade Gold/Silver/Crude Oil/Dollar Index

Commodities Market: Technical Outlook

Gold closed the session lower at $1,242, down $6.2. The downside target for gold remains intact at $1,228, with a chance of later extending towards $1,215. However, any upside will face resistance at $1,251. The 14-DMA is likely to cross below the 200-DMA, which is a bearish sign. We recommend investors to ‘Sell’ on the higher side, with risk defined above $1,251.

Silver ended the session lower at $15.69, down $0.14. Silver is expected to revisit yesterday’s low of $15.67; where a fall below will extend the decline towards $15.52, followed by $15.34. However, any upside will face resistance at yesterday’s high of $15.87. The RSI and the MACD have continued to decline, supporting a bearish view. We recommend investors to ‘Sell on Strength’, keeping stoploss above $15.87.

Positive movement continued for crude oil as it gained $0.66 to close at $57.97. Oil has currently closed above the 14-DMA, making a higher high and higher low that indicates potential for further upside. The upside target is established at $58.93, followed by $60.07. However, any downside will find support in the range of $56.96-$57.60. The RSI and the MACD have moved up, supporting a positive view. We recommend investors to ‘Buy on dips’, keeping stoploss below $56.96.

The USD index closed the session higher at 93.92, up 0.11 points. The index is trading above the 50-DMA that will restrict downside at 93.66. However, a break above yesterday’s high will extend the gain towards 94.06, followed by 95.05. The RSI and the MACD have moved up, supporting a positive view. Investors are recommended to ‘Buy on dips’, keeping stop loss below the 50-DMA.