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Commodities Brief: Precious metals catch a bid as USD slides

FXstreet.com (Barcelona) - The precious metals finished the day sharply higher, benefiting from a weak DXY which finished sharply lower down 0.71% at 83.00 and closing well below key support of 83.50.

The price action in gold was particularly impressive, closing up 1.50% at 1413 and above the key 1400 resistance level for the first time since mid May. Furthermore, gold also closed above the 20dma (1409) which is another constructive technical development. Silver also performed well, at one point trading as high as 23.06 but leaking lower later in the day to finish up 1.24% at 22.79. Short term moving averages on the daily gold chart are now neutral, with price above both the 9 and 20 dma’s. Short term moving averages on the silver remain slightly bearish, with price consolidating between the 9 and 20 dma’s. On a final note, the RSI (14) remains in bearish set up on both charts which will only change if 60 can be taken out on close.

Initial resistance in gold sits at 1425 (supply candle from May 15th), followed by 1440 (consolidation level break on May 13th), Initial support sits at 1400 (noted above), followed by 1390. First resistance in silver is at 22.93 (20dma), followed by 23.30 (top of range) . First support is at 22.46 (the 9dma), followed by 22.00 (bottom of range). To conclude, the recent technical developments after today’s gains is impressive, but the bulls will need to show additional follow through to help turn the trend bullish.

AUD/USD capped below 0.9700

AUD/USD is last at 0.9673, about unchanged for the session being after the NY close, less than 1 hour away from domestic data in the form of Private sector credit in Australia at 01:30 GMT. The pair has moved in a wide range of more than 100 pips for the day, still capped below the 0.97 level so far.
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