Commodities Brief – Silver settles at 22.00 barrier, crude at crossroads following surge

FXstreet.com (New York) - Commodity prices have recovered Monday, following European setbacks in the absence of any large-scale drivers.

Gold avoids critical downside target

Gold prices continue to face headwinds from its 20 and 50-day MA, which conspire to inhibit any manner of recovery. Ultimately, the key level on the downside remains the 1366 figure, which if breached, could induce a panic move that with enough momentum could drive the price down to 1330 and eventually the 1273 region. On the day, the yellow metal has swayed unevenly, having retraced back to USD $1384.50 per oz. in these moments. During US trading, the MACD is operating in positive territory, perhaps offering some breathing room in the form of a modest session retracement off its lows Monday.

Silver trades tight ahead of Friday payrolls

The white metal faced substantial pressure earlier, as the 22.00 resistance (previous support) turned from an area of strength into a level of weakness. However, in the face of this adversity, silver spot prices have recovered and retraced higher back towards this key region Monday during US trading. As such, the retest of this previously broken support might be seen before resuming the main downtrend this week, principally targeting the 20.25 zones, while the 50-day SMA at 23.25 could be the peak for bears intraweek. At the time of writing, the price of silver is trading at USD $21.94 per oz. with the MACD holding positively.

WTI crude prices could jump higher

Not all commodities have been on the chopping block recently, with WTI crude providing the perfect corollary to this notion as of late. A sharp rally occurred at the tail end of last week, which has all but stalled today, despite largely holding onto recent gains. Crude oil is trading at the crossroads at its current levels, and ultimately a break above the 97.00 region foster added upside in the near-term. Presently, prices have waned in these moments, as crude prices are trading at USD $95.56/bbl during US trading.

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