Commodities Brief – Precious metals rally on Cyprus comments, crude oil surges above 95.00

FXstreet.com (Barcelona) - The yellow metal lost its grip on the 1600 level Monday, as it bottomed out at the 1591 mark (intraday low) as investors optimism permeated the markets on news that a Cyprus resolution was to take effect. However, this resolve was evidently short-lived after disparaging remarks from the Chairman of Cypriot Parliamentary Finance Papadoloulos, in which he noted that they must assess benefits of a euro exit. On the heels of these comments, gold prices recovered slightly towards the USD $1597.57 per oz. mark in these moments, still operating negatively Monday.

Silver bounces off intraday lows
The white metal was drifting downwards Monday and even hit the 28.52 level (intraday minimum), falling below the 28.60 support. However, these proved to be the limit of the bloodletting, as comments surrounding Cyprus sent silver spot prices back higher. Having pared some of its losses, silver now trades at USD $28.72 per oz. during American trading. Prolonged stability below the 28.60 support could signal the start of a downside movement, while a weekly retest of the 29.00 resistance would allay these concerns in the near-term.

Crude surges past 95.00 on Cyprus
WTI Crude prices have exploded above the 95.00 level Monday with news of a Cypriot deal receiving quite the reception across the commodity markets. In these moments, crude is trading slightly off session highs (95.57) to the USD $95.41/bbl mark. Further conformation of this surge or prolonged stability above the 95.00 level is needed to determine a larger trend in the medium-term – in this view crude is already above calculated support at 95.00, which was previously a strong barrier that capped any ascent.