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7 May 2013
Commodities Brief: Precious metals finish lower after narrow range day
FXstreet.com (Barcelona) - It was a quiet day across the majority of markets as market participants being to re-assess all the economic data from the previous week. Most commodities traded in a narrow range, as gold closed down 0.13% at 1468.70, while silver closed down 0.70% at 23.98. On a final note, the one bright spot was oil which added to grains from last week and closed up 0.30% at 95.83 (although well of the highs set early in the Asia session at 97.17).
From a technical perspective, both gold and silver remain in consolidation patterns and need to follow through to the upside or another leg down could be setting up in the near future. The technical set up on gold is more constructive then silver, with price above both the short term 9 and 20 dma’s. However, the RSI (14) is still in bearish set up between the 20-60 range. Initial support sits at 1454.50 (the 20dma), followed by 1440 (low end of recent range). First resistance sits at 1480 (top of recent range), followed by 1510 (previous support, now resistance on weekly chart).
As for silver, the daily chart continues to resemble a ‘bear flag’ continuation patterns which would be confirmed on a close below 23.40. The measured move price target from this pattern is down near 17.80. Initial support sits at 23.40 (short term support trend line), followed by 22.70 (support on daily chart). First resistance remains at 24.35 (the 20dma), followed by 24.82 (high price on April 26th).
It will be important to monitor the upper and lower ends of the recent consolidation ranges on both the gold and silver charts. Any close above or below the previously mentioned levels will set the tone for the next major move in the precious metals markets which could happen this week.
From a technical perspective, both gold and silver remain in consolidation patterns and need to follow through to the upside or another leg down could be setting up in the near future. The technical set up on gold is more constructive then silver, with price above both the short term 9 and 20 dma’s. However, the RSI (14) is still in bearish set up between the 20-60 range. Initial support sits at 1454.50 (the 20dma), followed by 1440 (low end of recent range). First resistance sits at 1480 (top of recent range), followed by 1510 (previous support, now resistance on weekly chart).
As for silver, the daily chart continues to resemble a ‘bear flag’ continuation patterns which would be confirmed on a close below 23.40. The measured move price target from this pattern is down near 17.80. Initial support sits at 23.40 (short term support trend line), followed by 22.70 (support on daily chart). First resistance remains at 24.35 (the 20dma), followed by 24.82 (high price on April 26th).
It will be important to monitor the upper and lower ends of the recent consolidation ranges on both the gold and silver charts. Any close above or below the previously mentioned levels will set the tone for the next major move in the precious metals markets which could happen this week.