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Technical analysis: key levels for gold and crude

Oil prices are moving higher, but in a cautious fashion, while gold is off the lows of Wednesday’s session.

Gold mining facility
Source: Bloomberg

Gold gains may continue

The overreaction in gold yesterday, which took the price to $1330, brought out the sellers, but for now the price shows little inclination to hold below the 200-day simple moving average (SMA) – $1280. A failure to push on today could see a turn lower that tests $1265, with a close below here opening the way to $1250.

A rally needs to get back above $1295, the 50-day SMA, and then through the key area of $1307, which was resistance last Friday and support in August and September. 

Gold price chart

Brent seeks buyers

The dip in Brent crude was bought yesterday, but the price now needs to get back above the 200-day SMA at $47.45.

If it does we would look for a move towards $49.50 and then on to the area around $53. A break back below $45 would target the July low at $42. 

Brent crude price chart

WTI appears bullish

WTI needs to regain the rising 2016 trend, and to do this it must get back above $46.50. At present the buyers still look to have the upper hand, especially after the heavy momentum pressure came in around $44 yesterday.

A move above $46 would head towards $47.80, and then on to $49.50 and $52. A turn lower from here would head back to yesterday’s lows at $43.50, a level that was also support in August and September. Below this the July low of $40 is in prospect. 

WTI crude price chart

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