Gold could target $1160
Having fallen below $1180, gold is now struggling to rally off the lows, but on both the hourly and four-hourly charts any bounce is likely to lead to further selling.
Daily stochastics remain firmly bearish, and I continue to expect a rising dollar to hobble strength in precious metals. Downside targets lie around $1160, while any rally needs to clear the 50-day simple moving average at $1190.
Traders anticipate oversold bounce
Here too matters are shaping up nicely for an oversold bounce that will allow traders to sell into strength. Gains are likely to be capped by the $16 level, and a turn lower in hourly stochastics would provide a handy entry point.
Downside targets are to be found near $15.50 in the near-term, with a further target towards $14.50 for silver.
Brent capped at $64.90
Although capped by the 50-day SMA so far around $64.90, the price is also repeating its trick of shying away from the $65 level. Any moves to the downside for Brent will likely be halted at the key $62 support level.
WTI could drop to $59.30
The $61.50 mark is once again acting as resistance for WTI, although the nearness of the 200-day SMA at $61.70 will have something to do with it as well.
If we continue to drop back then downside targets lie around $59.70 and then $59.30.
