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Technical analysis: key levels for gold and crude

Gold is struggling to hold its ground this morning, while oil prices are looking to drop back once again.

Oil barrels
Source: Bloomberg

Gold firmly in the hands of the sellers
A sharp drop from Friday’s close leaves the metal trading within its relatively narrow consolidation range. A break below $1275 would suggest the sellers are still in charge, with a target down around $1250, and then on to the 50-day simple moving average (SMA) at $1248.

Bulls need to see a break higher and a close above $1295 to see the metal regain its upward momentum. 

Gold daily chart

Brent rally slows
Despite a move higher, the rally here looks to be running out of steam. However, bears need to get below $44.50 to confirm more downside is on the way, since this area has been vital support over the past few sessions.

It may however be that we are seeing oil prices stabilise, with any move through $47 certainly looking like a first step in a new leg higher. 

Brent daily chart

WTI to challenge $46
If the price fails to push on above $46 then we may see a fresh move back towards $44 and then down to key support at $42.60.

A daily close above $46 would indicate the price is moving higher once again, with a move to $48.30 and the early November high a possibility. 

WTI daily chart

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