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Technical analysis: key levels for gold and crude

Both gold and WTI have continued their ascent, with gold in particular managing to push through a crucial resistance level to provide a renewed bullish view.

Oil pipelines
Source: Bloomberg

Gold breaks key resistance level

Gold has finally broken through the crucial $1264 resistance level overnight, after an attack by the US on a Syrian airbase saw a flight to safety. Crucially, the break through $1264 means that we are looking at a wider bullish continuation move for the market.

The long upper shadow on the large overnight candle points towards a new swing high being created and, as such, a retracement could come into play here. However, as long as we do not see a break below $1250, any pullback is seen as a precursor to further gains. Conversely, should we see the $1250 level broken, it would largely negate this bullish view.

Gold price chart

WTI uptrend remains in play

WTI has seen another strong move higher overnight, with the attack on a Syrian airbase sparking fears of a greater US military involvement in the Middle East.

We haven’t seen anything to suggest that this trend is over and as such, a bullish outlook remains in play until we create a new lower low. For now that means a break below $51.00 would be required to negate this uptrend.

WTI price chart

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