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Technical analysis: key levels for gold and crude

Gold continues to move lower after last week’s high, while oil enjoys another temporary bounce.

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Gold bars
Source: Bloomberg

Gold starts to drawback
Gold rallies back towards $1090 should find sellers coming back in to keep pushing the price lower, as the pullback from the $1110 of last week continues.

Targets on the downside are to be found around $1074 and then $1064. The price would need to close above $1096 to suggest that the pullback has run its course.

Brent bounce catches bears by surprise
The strong bouncein Brent crude thus far this morning will have come as a surprise to some bears, but until it clears $32.70 it is arguably still a rally to be sold.

If the price moves above $33.50 then we might see a more sustained move to $35, but even here the dominant trend should not be trifled with. New targets on the downside lie around 429.1 and then $27.80. 

WTI rally in the offing
The US light crude price needs to clear $31.94 to suggest a rally is in play, in which we look towards $33.20 and then $34.20. Selling will doubtless resume in due course, at which point the area around $29.68 and then $27.41 comes into view. 

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