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Technical analysis: key levels for gold and crude

Weaker dollar is giving commodities a fresh reason to rally, as WTI looks set to finally get moving above $54. 

Crude oil
Source: Bloomberg

Gold sees more buying

A weaker dollar has given gold bulls a breathing space, with yesterday’s dip to the 200-hour simple moving average bringing out fresh buying momentum. 

It is now up to the bulls to get the price above $1245, in order to reignite the rally. Near-term support lies at $1230 and then $1225, while bears will be frustrated unless they can get the price back below $1220.

Gold chart

WTI supported by the weaker dollar

Yesterday’s dip was met by fresh buying, helped by the weaker dollar in the wake of Fed minutes. The price is beginning to show some resilience above the $54 level, having swiftly moved back above this previously troublesome area.

Now we wait to see if the price can break $55, although some weakness intraday is likely. It needs a move back below $53.60 to suggest the current bounce has been yet another flash in the pan. 

WTI chart

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