Gold no escape from triangle yet

No escape for the precious metal from triangle range and traders could continue to stay sideline. The gold movement has turned into a ranging movement after the breakout below $1,200 – $1,220 area. The price manages to make recovery toward the broken area, however, traders and investors turned cautious. Weak demand and the strength of U.S dollar is the main cause of gold weakness this year.

We might see further weakness in gold prices if the Fed turns extremely hawkish next week.

Today critical level to watch:

Support: $1,200, $1,189.20, $1,160

Resistance: $1,210, $1,220

Silver grazes $14.40

Silver closed bullish in the previous day near the top of the yellow box. The price continues its upward movement today and grazes $14.40 resistance level. If there is no breakout above the resistance level then silver expected to continue its movement between $14.00 – $14.40. However, a breakout above $14.40 will lead the precious metal to trade between $14.40 – $15.00 area.

Today critical level to watch:

Support: $14.00

Resistance: $14.40, $15.00

Crude oil more upside potential

Crude oil closed down in the previous day and tested a level near $70.00 today. The test on the level near $70.00 provides traders with the opportunity to enter a long position. Successful bounce from the support level will lead crude oil to a new bullish leg with a target at $72.49 – $74.80.

Today critical level to watch:

Support: $70.00,$67.20, $65.78, $65.00

Resistance:  $72.50, $74.80