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

Commodities Market: Technical Outlook

Gold showed negative movement to close at $1,266, down $10.2. Gold has currently dropped below the 200-DMA indicating potential for further downside. A fall below yesterday’s low will initially target $1,250, with a chance of later extending towards $1,242. However, any upside will face resistance at $1,277. The RSI and the MACD are heading down, supporting a bearish view. Investors are recommended to ‘Sell on Strength’, keeping stoploss above $1,277.

Bears continued to dominate the session as silver lost $0.22 to close at $16.06. If the decline continues, the initial target will be at $15.82, which could later extend to $15.52. However, any upside will face resistance at yesterday’s high of $16.34. The RSI and the MACD have continued to decline, supporting a bearish view. We recommend investors to ‘Sell on Strength’, keeping stoploss above $16.34.

Crude oil witnessed a range bound session to close flat $57.44. Oil is expected to re-test support at the 14-DMA; where a fall below will initiate the downtrend with $56.44 and $54.97 as the next targets. However, any upside will find resistance at yesterday’s high of $57.92. The indicators are mixed, signaling no clear trading view. We recommend investors to ‘Sell’ below the 14-DMA.

The USD index ended the session higher at 93.25, up 0.22 points. The index is expected to revisit yesterday’s high of 93.43; where a break above will target 93.61. However, any downside will find support at yesterday’s low of 92.98. The RSI and the Stochastic Oscillator have moved up, suggesting a positive trend ahead. We recommend investors to ‘Buy’ above 93.43.