Commodities Brief – Gold incurs largest ever daily decline, silver waylaid at 23.00 level

FXstreet.com (Barcelona) - Gold experienced its largest one-time decline ever yesterday, driving the price below the 1400 level as gold bears rejoiced (1320 session low). The yellow metal proved has yet to truly bottom out, as the price is still highly unstable, after back-to-back sessions resulted in an all-out collapse. As of European trading Tuesday, the price of gold is now trading at USD $1361.20 per oz. The recent drop suggests that the sell-off could be exaggerated, and usually when the market witnesses such sell-offs, it leads to major volatility where correctional bounces can be strong and lengthy.

Silver prices collapse
Spot silver prices also were seemingly destroyed yesterday, with the price collapsing towards the 23.00 level. Tuesday however, has offered little respite from the selloff, as a recovery attempt stalled at the 23.50 level before falling back and retracing losses. In these moments, the price of silver is trading at just USD $23.10 per oz. – the white metal has extended its losses sharply yesterday, as the price has gone excessively oversold, and thus a correctional move is probable now, which may provide another opportunity to short the metal.

Crude breaks 88.00
Per the order of other commodities, WTI Crude oil was spared no such fortune, as prices plunged yesterday to test the 88.00 level. Tuesday, crude maintained the strong bearish direction, and broke the 89.35 support level, following the earlier break of the main ascending trend line shown on image. Accordingly, most of the technical conditions point to further weakness. At the time of writing, crude oil is trading at USD $87.82/bbl.