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Commodities Brief – Precious metals trading with volatility following Bernanke testimonial, gold prices cannot sustain 1400 level

FXstreet.com (Barcelona) - Gold prices surged Wednesday, after Federal Reserve Chairman Ben S. Bernanke warned today in a recent testimony that the U.S. economy remains hamstrung by high unemployment and government spending cuts, and tightening policy too soon would endanger the recovery. Indeed, the prices bounced from 1387 to session highs at 1409 during US trading. However, in recent moments, the 1400 level proved to be too much to handle at the moment, causing a movement back towards USD $1396.20 per oz. at the time of writing. Prolonged stability above the 1400 level would effectively cancel an intraday bearish scenario.

Silver cannot hold 23.00 level
The price of silver also received a welcome boost, surging above the 23.00 for the first time since earlier this week. However, intraday highs at 23.21 capped the silver rally, leading to an easing back below the 23.00 barrier and to USD $22.71 per oz. presently. The 23.00 region is providing substantial resistance for the white metal and until this region can be summited, a prolonged recovery is less likely.

WTI holds above crucial support
WTI crude oil is trying to regain momentum, and move higher after testing the 95.50-95.25 key short-term support, while we remain cautious at the current levels, awaiting further confirmation of the next potential move. In these moments, crude is negotiating a price of USD $95.79/bbl Wednesday.

US May 17 EIA Crude Oil Stocks change improves to -0.338M vs -0.624M

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