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Commodities Brief – Precious metals edge lower off overnight highs, crude oil in focus after Chavez death

Gold prices have been trading in a firm consolidation overnight, as investors look ahead to a series of central Bank meetings from the BoC and ECB. In particular, Asian banks such as the Bank of Korea have been stocking up on the yellow metal, which also supported short-term sentiment. Having peaked earlier at 1578.95, gold has eased slightly back to the USD $1576.60 per oz. level in these moments, situated well below its 20 and 50-day SMA. Gold prices sit at the crossroads and a break below the 1570 support could initiate a further decline, while a movement above the 1585 resistance could open a path higher. Yesterday’s rally in gold prices proved to be watered down by a rally in stock prices, including the Dow Jones Index reaching an all time high with the S&P not far behind. Later today investors will eye several US indicators to gauge economic performance.

Silver surrenders overnight gains
After breaking briefly above the 29.00 level yesterday, silver spent the rest of the session trading sideways as investors were forced to swallow the better-than-expected ISM data in the US, which led to a surge of gains across the US equity markets. The white metal has held its own Wednesday during European trading, slightly off its overnight highs in the 28.88 region. In these moments the price of silver is negotiating a spot price of USD $28.71 per oz., hampered by a negative MACD.

Crude in focus after Chavez death
WTI Crude oil faced a unique set of circumstances as investors learned of the passing of Hugo Chavez, a man who had laid his stamp on oil politics in the region, specifically with the United States. Crude oil climbed on news of his death overnight over the 91.00 level, though at the time of writing the price has operated lower at USD $90.85/bbl. Crude is well supported by the psychological 90.00 barrier and 200-day SMA, which leads many to be bullish on oil.

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