Technical analysis: key levels for gold and crude

Gold is testing key support once more, while oil has managed to move back above important near-term support.

Gold bears take charge again

Gold is under fresh pressure this morning, as the brief bounce from the end of last week fizzles out. It is still, for now, holding support around $1205, but a close below this targets $1195 and then $1180.

Having spent the week holding $1205, a break of this support would likely lead to a swift drop. A recovery above $1220 would signal some near-term strength, but as was the case last week a close above $1236 is needed to create a new higher high.

WTI clambers back above support

Friday saw WTI stage a late recovery that put it back above the $66.60 support zone. However, the bounce is starting to slow, suggesting a drop back towards $66.00.

Below this, the $63.80 support zone from the June lows comes into play, and then down to $62.56. A rally back above $69.00 would target the descending trendline from the June high at $74.08, suggesting trendline resistance around $70.00. A breakout above here would bring $73.00 and $74.00 into view.

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