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Commodities Brief – Precious metals surrender some of yesterday’s gains, crude targets stability above 93.00

The price of gold has made a comeback in recent days, trading near its two-week high as renewed fears out of Europe have helped foster risk-aversion in markets – clearly to the benefit of the yellow metal. While prices have not been able to overtake the 1600 barrier/key resistance in recent days, gold has succeeded in being confined to a narrow consolidation, stabilizing a month-long free-fall. Indeed, in the aftermath of last week’s Italian downgrade by Fitch, along with other European blemishes surfacing on the continent, gold could be primed for a move higher if sentiment wanes. At the time of writing, the price of gold has settled at USD $1590.54 per oz.

Silver retreats back towards 29.00
Silver spot was given a boost yesterday as the price rallied above the 29.00 barrier, moving higher to target the next upside figure of 29.45 – though this ultimately proved to be too big a hurdle to summit. On the contrary, Wednesday has offered a different outcome, as the white metal has surrendered some of the ground gained yesterday, edging back towards the 29.00 level. In these moments, the price of silver is negotiating a price of USD $29.04 per oz. Wednesday. With US markets in overdrive and some beginning to question the health of the US economy, weighing it with the influx of monetary easing, silver could find itself at the forefront of any changes in sentiment.

Crude targets stability above 93.00
WTI Crude oil has finally shown signs of life in recent days, after being shackled to the 90.00 supportive bastion that seemed to gravitate prices and prevent any matter of advance. Yesterday however, the price overtook the 93.00 level, and with the supply still in focus, the price of crude has managed to hold onto those gains, trading at USD $92.86/bbl at the time of writing today. Prolonged stability above the 93.00 level will certainly help with the confidence of investors.

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