Gold onward to new target area

The breakout in U.S dollar index favored more upward movement in gold prices. U.S dollar index confirmed to enter the bearish long-term area, and the monthly close will tell what will happen for long-term. Meanwhile, gold confidently upward and targeting $1,390 – $1,430 area where 2014 high present.

Traders who are looking for the long position could look at $1,300 or $1,337.

Today critical level to watch:

Support: $1337, $1,300, $1,280, $1,258

Resistance: $1,390, $1,400, $1,430

Silver proceed as planned

Silver is on the path toward $18.50 and the ECB conference on Thursday make it clear the precious metal will reach the resistance soon. Weakness in U.S dollar is one big reason why silver formed bullish engulfing pattern Yesterday. If there is no change to the fundamental outlook of U.S dollar, it looks like $18.50 could be broken.

Today critical level to watch:

Support: $18.00, $17.73, $17.50, $17.00, $16.80

Resistance: $18.50

Crude oil not too enthusiastic on rising inventory

Despite the strength in global market following the weakness in U.S dollar, crude oil take a sideway route. On Thursday, U.S crude oil inventory raised 4.6 million barrels which are 0.5 million more than 4.1 million barrels increase expectation.

The $50 handle is not far from current level. Even though crude oil weakens, it looks like the weakness will be limited between $48.00 – $48.50.

Today critical level to watch:

Support: $48.50, $48.00, $47.31

Resistance: $50.00