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Technical analysis: key levels for gold and crude

Commodities have taken a pause for breath, with gold remaining stuck in a consolidation period. 

A gold mine at night
Source: Bloomberg

Gold price consolidates

The steady downtrend might still be in effect, but for now the price seems to have settled into a consolidation mode just above $1085. A move through $1080 would be the catalyst for fresh losses, but for now selling momentum seems to have ebbed. As before, buyers will need to push the price back above $1100 to confirm that a bounce is underway. 

Spot Gold chart

Brent rangebound

The price finds itself trapped between $47 on the downside and $48.50 on the upside. A clear move through the latter would target $49.12 and then $50, while a fresh drop below $47 would head towards the late October low at $46.50. 

Brent crude chart

WTI could fall to $42.60

The $43.50 mark seems to be the level to watch on the downside for WTI, as the pullback from $48 has stalled just above this level. A break below it targets $42.60, the low from 27 October. Any bounce needs to clear $45, with resistance at $46.50 before moving on to $48 itself. 

WTI chart

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