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Technical analysis: key levels for gold and crude

Gold prices have recovered off the lows of last week, while oil appears to be in retreat after its strong September rally. 

Gold bars
Source: Bloomberg

Gold eyes $1300

Having rallied sharply on Friday, gold might be in a position to push higher. If the price can hold above $1260 and the 200-day simple moving average (SMA) then we would look for the chance to buy weakness with a view to a general push back to $1300.

A move down from the current level would head towards $1250 and then to $1200.

Gold

WTI could drop to $48

The drop on Thursday, and additional weakness on Friday suggests that we may see more declines, as the OPEC effect wears off.

Indeed, a bounce today could provide a fresh selling opportunity, especially if the price pushes on below $49.50.

The next target would be $48, the peak from mid-September. Below this the price would head towards $46.67 for WTI.

WTI

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