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Technical analysis: key levels for gold and crude

Gold remains determined to push higher, while oil could be poised for a new move lower. 

Mining
Source: Bloomberg

Gold recovering quickly

A small pullback yesterday has already been recovered, and now we wait to see if gold can push above the 200-day simple moving average (SMA) at $1257. Above here the targets remain $1271 and $1281.

Any failure to push on from current levels raises the risk of a move back to $1240 and then down to the 50-day SMA at $1231. 

Gold price chart

WTI with obstacles ahead

Tuesday’s dip simply brought out yet more buyers for WTI, and now the price faces hurdles at the $52 level, with this resistance point amplified in strength by the presence of the 50- and 100-day SMAs ($51.87 & $51.83 respectively). A break above here puts the price back in the range that dominated from December until March, and would potentially suggest a return to the 2017 highs at $55.67.

A turn lower from here would still be encouraging for the bears, since it would mark a failure at $52, and also a new lower high. It would suggest a move back to the 200-day SMA at $49.11, and then down to the still intact rising trendline off the April lows. 

WTI price chart

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