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Precious metals capped by upside barriers ahead of Bernanke speech

FXstreet.com (New York) - Commodity prices held onto narrow gains during Asian trading Wednesday, with investors anxiously awaiting Fed Chairman Ben Bernanke’s Speech later in the day.

Gold looks to test upside target

Gold prices have continued to rebound out of a tight consolidation that has left the yellow metal in sights of the 1300.00 barrier Wednesday. The upside move remains favored, given viable support at the 1261.00 level. Though staunch resistance resides at the 1300.00 level, a break above this region could initiate an uptick towards the next target at 1320.00 - ultimately prolonged stability above the 1300.00 level will initiate a bullish scenario, though this hangs on Bernanke’s speech. At the time of writing, gold prices are trading at USD $1290.36 per oz. Wednesday.

Silver could enter bullish correction

Despite the recent underperformance relative to its golden counterpart, silver spot prices have shown some measure of fortitude, touching the 20.00 barrier repeatedly, despite ultimately failing to stabilize above this region. With key support insulating the white metal at 19.50, a move towards the upside could eventually look to test the 20.20 resistance. At the current levels, the price of silver has now moved to USD $19.96 per oz. during Asian trading.

WTI crude pauses rally

WTI crude oil prices once again extended a bounce higher yesterday, pausing from this recent outperformance during Asian trading Wednesday. The overall bullish bias continues to be dominant, while the bullish wave remains intact ahead of tomorrow’s events. In these moments, WTI crude oil is negotiating a price of USD $105.72/bbl Wednesday.

EUR/AUD holding above early March ascending trendline

The EURAUD foreign exchange cross rate is last trading at 1.4239, unchanged since late Asian session yesterday, given same strength in both components Euro and Aussie against USD, or in other words, broad USD weakness.
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For currency markets, the USD was generally weaker throughout the earlier sessions, presumably due to positioning ahead of Ben Bernanke’s testimony today, suggests Strategist Robert Henderson at NAB.
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