Technical analysis: key levels for gold and crude

A weaker dollar has helped commodities to rally over the past week. Can this be sustained?

Oil barrels
Source: Bloomberg

Gold regaining ground

The gold rally on Friday continues to recover the ground lost over the past few weeks. Today has seen the price push back above the 200-day simple moving average (SMA), so that we now look to $1240 and $1246 as the next potential areas of resistance. Above these a broader move towards $1260 and $1267 could be in play.

It would need a reversal back below $1222 to suggest a new move lower is underway.

WTI testing $47

A push higher at the end of last week confirmed the bullish strength for WTI, with the price testing $47 once more. Above the early July peak of $47.41, the price would target the 100-day SMA at $48.61, and then on to the 200-day SMA at $49.90.

Dips should continue to be viewed as buying opportunities unless the price closes back below $45.84.

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