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Crude Recovers Some Losses, Precious Metals Trade Weaker

COMMODITIES
  • Crude recovered some of the earlier losses after a small US crude inventory draw according to the update EIA weekly petroleum data. Crude has jettisoned some of the Libya-related gains, amid high spare capacity from OPEC and upcoming cut unwinding.
  • WTI Oct 24 is down 1.2% at $74.6/bbl.
  • For WTI futures, a resumption of gains would refocus attention on key resistance at $78.54, the Aug 12 high. For bears, an extension lower would once again expose the $70.88 key support.
  • Spot gold has fallen by 0.6% to $2,509/oz today, amidst a strengthening of the US dollar in Wednesday’s session.
  • From a technical perspective, bullish conditions in gold remain intact, with focus on a climb towards $2,536.4 next, a Fibonacci projection. Initial support to watch lies at $2,475.4, the 20-day EMA. Short-term weakness would be considered corrective.
  • Meanwhile, silver has underperformed, falling by 2.3% to $29.3/oz.
  • For silver, a medium-term bearish cycle is still intact and recent gains appear to be a correction - for now.
  • Key support is seen at $26.018, the May 2 low, while on the upside the 50-day EMA has been cleared and is a concern for bears. A continuation higher would cancel the bearish theme and expose $30.502 next, a Fibonacci retracement.
  • Copper is also down by 2.2% today, at $414/lb.

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