Technical analysis: key levels for gold and crude

Gold prices are once again flagging, but it is in crude where the bears seem to be in real control.

Gold bullion
Source: Bloomberg

Gold continues to struggle
The inability to push on through $1260 last week would suggest there is still insufficient upward momentum in gold. Any bounce back towards $1240 or $1255 may well encounter fresh selling pressure that sees a test of $1224 and then down towards $1200.

A rally must close above $1260 to be seen as something other than a fresh selling opportunity.

Gold price chart

Brent favours the sellers
Despite a new high last week, the Brent price has moved back below $45, putting the initiative back into the hands of the sellers. A bounce may see the price push back towards $46, but unless it closes above here we can expect more downside, perhaps down towards $43 and then $41. 

Brent crude price chart

WTI pulls back
So far the WTI pullback from $44 is relatively shallow, but if the price breaks back below $42.60 the downside could accelerate rapidly. In that case, we would look towards $40.30 and the 200-day simple moving average.

A further dip would push the price back towards the $38.05 area. A rally must close above $44.50 to confirm more gains are in store, but with the trend looking rather tired, the path downwards may be the easiest for the time being. 

WTI price chart

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