Commodities Brief – Gold operates near one-week high as the reiteration of US easing revitalizes precious metals

Gold prices have been confined to a rather tightened range Wednesday, after recording its highest daily advance all week yesterday on comments of prolonged quantitative easing in the US. The yellow metal reached as high as 1614.35 (session high) earlier today during European trading, however it has found itself capped by its 200-day SMA, which is acting as resistance, and its 20 and 50-day SMA acting as support. At the time of writing, gold is trading in negative territory at USD $1611.20 per oz., down -0.27% While markets will listen for any derivation of this strategy at Bernanke’s testimony later today at 15:00 GMT, the primary near-term focus will be the looming March 1 deadline, and the positioning gold investors will take surrounding this date.

The recent rally of Silver yesterday had to score a psychological victory with bulls, snapping an otherwise dismal stretch that took prices lower in recent weeks. Fundamentally speaking, the white metal has recently moved below its 10 and 50-day EMA, while MACD convergence suggests little chance of a wide break in either direction in these moments. At the time of writing, Silver is holding above the 29.00 figure, trading at USD $29.20 per oz., down -0.21% Wednesday. However, with risk premia surrounding the latest round of fiscal negotiation in the United States – already coming off the heels of the QE3 reiteration, silver looks primed for some degree of risk-based action.

Apart from a brief spike yesterday in WTI Crude above the 93.26 level, prices have been relatively devoid of much rapid oscillation, edging higher during European trading Wednesday, in sights of retesting the 93.00 barrier. In these moments crude is negotiating a price of USD $92.87/bbl.