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Technical analysis: key levels for gold and crude

Dollar weakness is doing wonders for gold, but oil has yet to find any bullish momentum to arrest its decline.

Oil refinery plant
Source: Bloomberg

Gold buoyed by Trump surge

The Trump surge and dollar weakness has meant gold is on the cusp of hitting $1300 much quicker than anyone anticipated. A push through the 50-day simple moving average (SMA) at $1299 would still leave the price in a downtrend off the summer highs.

We would need to see sustained action above $1320 to indicate the pullback has run its course. A turn lower from here would head back towards $1250.

Gold price chart

WTI drop continues

Each drop brings the price closer to the 2016 trendline. If the price does hold above $45.85 then we could still see a rally back to $50 and then $52.

A close below $45.85 would suggest the price will move towards $43 in the first instance and then potentially down to the early August low sub-$40.

WTI price chart

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