Commodities Brief – Gold retakes 1600 level, commodities rally on increased demand outlook

FXstreet.com (Barcelona) - Gold prices rebounded Monday after an earlier setback surrounding the drama currently unfolding in Cyprus, which sent the EUR plummeting against the USD. However, the mood recently has certainly been one that gold bulls welcome, as investors increased wagers on a commodity rally by the most in eight months as signs of a U.S. economic recovery bolstered the outlook for demand. At the time of writing, the yellow has stabilized above the key psychological 1600 level/former resistance at USD $1609.60 per oz., providing a new floor, from which investors can expect a modest recovery. Though gold ultimately is trading sideways currently, the next key resistance will be eyed at 1625, as well as the buildup to the FOMC Thursday – although no change in policy is expected.

Silver testing 29.00 level
The white metal found itself in a tailspin Monday, as the overnight session and Cyprus tomfoolery proved to be unkind to silver bulls. However, Monday has proven to be a tale of two directions, as the afternoon session has led to a recovery in prices. Following a move down towards the 28.65 region earlier today, silver has pared its losses to test the 29.00 level in these moments (USD $28.99 per oz.). Ultimately, prolonged stability above the 29.00 level is needed to signal a breakout higher.

Crude falls below 92.00 then recovers
WTI Crude suffered an early setback on the news over Cyprus, as the price eventually found themselves trading down towards the 92.00 barrier during American trading Wednesday (session low of 91.80). However, in recent moments, crude prices have somewhat rallied off the range floor and the 92.00 support, trading at USD $92.19/bbl.