Commodities Brief – Gold capped by 200-day SMA, silver falls below $29.45

Gold prices were a notable casualty yesterday as prices have incurred yet another overall weekly decline amidst the bourgeoning signals of US economic fortitude. At this juncture, the yellow metal has competed – albeit unsuccessfully in 2013 thus far – with the USD as a safe haven, principally as a hedge against inflation, especially with mounting political turmoil in Italy. As of European trading Friday, Gold’s 200-day SMA served as temporary resistance, capping each upside attempt so far today during overnight trading. More specifically, an earlier attempt higher was stymied at the 1583.25 (session high), culminating in a pullback that now places gold at USD $1578.71 per oz. in these moments. Investors will be tuned into updates later today in the United States, in the hopes that the two partisan groups can strike a deal to allay the sweeping ramifications of the sequestration.

Silver prices reiterate weakness…
The price of Silver dipped below calculated support and the psychological 29.00 level yesterday, as upbeat US data during the American session proved to be the largest culprit for downward movement. The white metal has thus far shown little signs of life Friday, as overnight and European trading have not lent much strength to the price, which failed to even overtake the 28.55 region earlier today (session high). In recent moments, the price has reverted back towards USD $28.43 per oz., highlighting another dismal week for silver. Of course, mounting fears and an all out breakdown in negotiations surrounding the sequester could initiate a risk-off movement that could breathe life into commodities – stay tuned.

Crude make failed attempt at 92.00…
Perhaps the biggest loser yesterday in terms of commodities was crude oil, having unsuccessfully held above the 93.00 level. Fast forward back to the present and the 92.00 barrier seems to be the near-term challenge for prices, despite an earlier attempt at the mark during European trading. At the time of writing, WTI Crude oil is operating at USD $91.78/bbl.