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Commodities Brief – Precious metals pare losses on weakening USD, crude prices cannot stabilize above 97.00

Posted
4/3/2013 9:19:00 AM
By: FXstreet.com
Referenced Stocks:

FXstreet.com (Barcelona) - Gold prices have started off the week under siege from a resurgent US dollar, however the fortunes have changed Wednesday, as gold managed to stage some tepid form of recovery ahead of US trading. With weak ADP employment numbers, gold found itself trading at USD $1572.42 per oz., slightly off its highs of 1574. Though the yellow metal is still operating below support, spot prices will now look to hold above the 1565 support (intraday low), to prevent a further downside from occurring.

Silver operating above 27.00 support
The white metal has finally slowed the bleeding as well today, given a reprieve from what has otherwise been a tumultuous week for precious metals. Having fallen below the 27.00 briefly (26.91 intraday low) during European trading, silver prices have recovered the mark of 27.29 ahead of American trading, helped by the US data miss. With the USD now in a slight retreat, look for silver spot prices to continue a sideways path - however, a failure to hold the 27.00 level/support could result in a break lower. At the time of writing, silver is trading positively at USD $27.23 per oz.

Crude cannot hold above 97.00 level
WTI Crude prices have found themselves in a state of flux Wednesday, having bounced recently off the 96.44 level. With the losses now successfully pared, prices are now hovering near the USD $96.70/bbl region, unable to summit the 97.00 level.