Commodities Brief: Precious metals setting up for another leg down?

FXstreet.com (Barcelona) - The US Dollar was well bid across the board today, which likely helped weigh on both gold and silver as DXY finishing sharply higher up 0.69% at 84.31.

Once all was said and done, gold finished down 1% at 1379 while silver finished down 1.63% at 22.22. However, oil was able to buck the trend and sustain higher trade, closing up 1.50% at 95.03. From a technical perspective, both short term moving averages and the RSI (14) remain in bearish set up on the gold and silver daily charts, which may continue to help limit advances in the coming days. The oil chart remains extremely choppy, with technical indicators displaying confusing signals as the commodity continues to chop around between 92.00 and 97.00

From a pattern perspective, both gold and silver appear to be forming ‘bear flag’ continuation patterns. This development had already occurred previously after the steep declines suffered in mid April. A close below 1370 would be needed to confirm the most recent pattern on gold, which would have measured move targets down near 1270. As far as silver goes, a close below 21.90 would complete the pattern and set a measured move price target of 20.35.