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Technical analysis: key levels for gold and crude

Gold’s rally goes on, while oil has regained its bullish dimension thanks to a weaker US dollar. 

Gold bars
Source: Bloomberg

Gold could move to $1200

Gold’s comeback this week has been impressive, even if it has not recovered even half the ground lost since early November.

The uptrend off the December lows is still intact so any dip, such as we saw on 3 January, should bring out fresh buying, with a move to $1200 eminently possible. It would take a move below $1150 to negate the current move higher.

Gold

WTI eyes $56.20

A recovery this week, helped by a weaker US dollar, has restored the bullish outlook. Indeed, the recovery has seen the price regain $54, which leaves it open to testing $54.80 and then $55.37 in the short term, and then on towards $56.20.

It would need a drop below $52.65 to suggest more weakness is in store. 

WTI

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