Daily Trade Gold/silver/Crude Oil/Dollar Index

Commodities Market: Technical Outlook

Gold witnessed a range bound activity to close at $1,266, up $1.19. Gold is expected to test resistance at the 200-DMA; where a break above will target the 50-DMA at $1,275. However, any downside will find support at $1,263, followed by the 14-DMA at $1,257. The RSI and the MACD have moved up, supporting a positive view. We recommend investors to ‘Buy on dips’, keeping stop loss below the 14-DMA.

Silver ended the session lower at $16.11, a loss of $0.04. Silver is expected to re-test support at yesterday’s low; where a fall below will target the 14-DMA at $15.97. However, a break above yesterday’s high 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.

A steady uptrend continued for the crude oil as it closed at $58.16, up $0.19. 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 $57.61, followed by $57.29 (14-DMA). The RSI and the MACD have continued to rise, supporting a positive view. We recommend investors to ‘Buy on dips’, keeping stop loss below the 14-DMA.

The USD index ended the session lower at 92.82, down 0.10 points. The index is expected to revisit yesterday’s low of 92.80; where a fall below will continue the decline with 92.41 in sight. However, any upside will find resistance at 93.08 (yesterday’s high). The RSI and the Stochastic Oscillator are heading down, supporting a negative view. We recommend investors to ‘Sell on Strength’, keeping stop loss above 93.08.