The precious metal that has remained ‘not-that-precious’ for the past several days gained against the U.S dollar on Monday where it continued its bullish run from Friday’s U.S session, after bouncing back from a fresh new low of 1178.
The metal successfully breached its resistance level at 1244 on Monday after which it tested 1261.64 where it is now facing a strong resistance at 1265 mark where its 200-EMA lies on the 1-hourly chart.
The metal is bullish on all small-time frame charts, but provided that it makes a sustainable move above 1265 mark, then it may head up further to test its weekly target of 1300 psychological level.
The buying is happening more because of the psychology that is playing in this market where investors would not like the metal to see below 1200 level, while knowing that many investment firms have their buying orders placed at this level.
Brent Oil Gains over Supply Fears
Brent oil gained on Monday and crossed its $103 mark based on the concerns regarding the disturbance in supply from the Middle Eastern and African region. According to the reports, oil production has plunged in Libya by around 30% following the unrest in the region where a number of oilfields have been shut by protesters.
On the other hand, the unrest and heavy protests in Egypt against their President’s regime is growing which is creating concerns regarding the instability in the Middle East that would further affect the oil exports in a negative way.
Silver is like a Tail
For the past several years, the metal has a technical behavior that shows that it acts like a tail of gold, where it follows the move in the same direction as gold does but with more volatility. Following the FOMC statement by Ben Bernanke, gold fell notably, while silver slumped even more drastically
According to the commodity traders, the major reason to hold such commodities is not there at least for now after realizing what FED said last week. Silver plunged sharply that it broke its long-term support of $19.00 and tested $18.17 on Friday. Some analysts are speculating on the bulls to take control over this metal, but in general many investors have their buying pending orders set at the $16.00 level.