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WTI, Brent Lower as Multi-Decade High Overbought Condition Weighs

COMMODITIES

After hitting new cycle highs in Asia-Pacific hours, WTI and Brent crude futures moderated into the close to nurse small losses on profit-taking, position squaring and hopes that inclement weather conditions in the southern US states should abate at the weekend.

The moves coincide with overbought conditions reaching a new extreme - the WTI crude futures RSI hit the highest level since the 1990 oil price shock, which saw prices double over the course of a few months.

Gold and silver shrugged off both a weaker global equity market as well as the softer USD to trade in the red ahead of the Thursday close, with silver the laggard. Clustered support at and around $26.84 should provided some support ahead of any test on the 50-dma at $26.14.

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