Daily Trade Gold/Silver/Crude Oil/Dollar Index Levels

Commodities Market: Technical Outlook

Gold witnessed a range bound activity to close flat at $1,261. Gold is expected to revisit yesterday’s high of $1,265; where a break above will deliver gains towards $1,268 (200-DMA), followed by the 50-DMA at $1,276. However, any downside will find support at $1,259. The MACD and the Stochastic Oscillator have moved up, supporting a positive view. We recommend investors to ‘Buy on dips’, keeping stop loss below $1,259.

Silver adjusted its previous gains to close at $16.10, down $0.03. Despite a negative closing, silver has formed a higher high and higher low that indicates potential for further upside. Moreover, silver is trading above the 14-DMA that will restrict downside at $16.01. However, a break above $16.21 will extend the gain towards $16.27, followed by $16.48. The indicators are mixed, supporting a neutral view. We recommend investors to stay ‘long’ above the 14-DMA.

Crude oil ended the session higher at $57.59, up $0.31. If the gain continues, the initial target will be at $58.57, with a chance of later extending towards $60.11. However, any downside will find support at the 14-DMA that is standing at $57.25. The RSI and the Stochastic Oscillator are heading up, supporting a positive view. We recommend investors to ‘Buy on dips’, keeping stop loss below the 14-DMA.

  

The USD index extended the decline to close at 93.04, a loss of 0.18 points. The index has dropped below the 14-DMA that will now provide resistance at 93.17. However, a fall below yesterday’s low will extend the decline towards 92.41. The RSI and the MACD are moving down, supporting a bearish view. Investors are recommended to ‘Sell on Strength’, keeping stop loss above 93.29