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Technical analysis: key levels for gold and crude

It looks like more weakness is in store for gold, while oil inventory data has put the price of crude on the back foot.

Miners
Source: Bloomberg

Gold likely to show weakness
The bounce has stalled below $1350, perhaps indicating that more weakness lies ahead. As a result, we may see a move to $1305, but a more substantial dip could head towards $1250 or even $1200.

Nonetheless, the trend in gold is still upwards, so a large-scale sell-off could be welcomed. Any bounce would still head towards the $1350 area, where gains stalled in July.

Gold chart

WTI looks to head lower
Inventory figures yesterday dealt a blow to those expecting a new bounce for oil prices, so now we look to the lows of last week at $39.25. A move through here would put $35 in focus. Meanwhile, any rally back above $42.60 would clear the way back to $45. 

WTI chart

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