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Commodities Brief – Precious metals drop to session lows, gold settling at support

FXstreet.com (New York) - Precious metals ran into a buzzsaw Tuesday morning during US trading, incurring sizable losses with the FOMC on in the upcoming session.

Gold prices dip to key support

Gold prices pushed lower throughout the European session, ultimately breaking and settling below 1380.00 level, having thus activated a portended bearish scenario. A move lower towards the initial 1365.00 should provide some measure of stability, while alternative the 1390.00 resistance manage to hold the yellow metal in consolidation in the near-term. In these moments, gold has settled at USD $1363.40 per oz. Tuesday.

Silver faces heavy selling pressure

Silver prices are again under heavy selling pressure, having approached the minor ascending support on a four-hour basis. A break below this support could lead to further losses today. Overall, holding below the key 22.10 resistance level keeps the bearish outlook intact – a level that has previously been rebuffed. At the current levels, the price of silver has now moved to USD $21.56 per oz. during US trading.

WTI holds onto recent gains

WTI crude oil is holding above the key intraday support at 97.35, a break below this support will probably extend the correction towards 96.60 support area, where the ascending trend line for the latest bullish wave resides. Should a move occur to 96.50, that would provide another opportunity to long the commodity in the context of the bullish wave. At the time of writing, WTI crude prices have settled in the region of USD $98.06/bbl during US trading.

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