Brent crude oil, gold and silver prices try to stabilise post-FOMC
The oil price and precious metals have had a difficult time of late but are trying to find support.
Brent crude oil trades in six-week lows
The Brent crude oil price dropped to a six-week low following a plethora of US data which might indicate that the Fed’s expected soft landing might not take place, leading to lower future demand.
On Thursday a minor recovery from Wednesday’s low at 83.24 is taking place but might already encounter resistance along the 200-day simple moving average (SMA) at 84.12. Above it sits the 22 April low at 85.21 which is expected to act as resistance with the 55-day SMA at 85.52, were it to be reached.
A fall through 83.24 and the 83.12 October low could lead to the 81.44 to 80.25 late December, mid-January highs and late February high to be revisited.
Gold price recovers post FOMC
The spot gold price, which dropped to $2,282 per troy ounce on Wednesday, recovered to above the $2,300 mark following brought forward US rate cut expectations after US Federal Reserve (Fed) Chair Jerome Powell’s post FOMC speech.
A rise above Wednesday’s $2,328 high would likely engage last week’s high at $2,352.
Support above Wednesday’s low sits at the 23 April $2,292 low.
Silver price weighs on support line
The spot silver price’s descent from its $29.79 per troy ounce mid-April high, a level last traded in February 2021, has taken it to the February-to-April support line at $26.39 which offers support above this week’s low at $26.25. If slid through, the $25.77 December and late March highs would be back in play.
Immediate downside pressure will likely dominant while no bullish reversal above Friday’s high at $27.73 is seen.
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