Technical analysis: key levels for gold and crude

Gold prices remain under pressure as markets move back into ‘risk on’ mode, while oil is rallying once more, as the dip buyers are rewarded.

Gold bars
Source: Bloomberg

Gold moving down
Gold’s drop back from $1300 is still in play, although the $1280 area is holding as support. A break below here would head towards $1256 and the 50-day simple moving average (SMA), and then down towards $1240. A recovery back above $1300 would still need to see a close above the 16 June high around $1316. 

Brent puts bulls in charge
A storming day on Friday and a strong start this morning has put Brent back above its rising 2016 trendline, and with the price back above $50 the bulls are in charge once more.

The next area to watch would be the early June high just below $53, so dips on the way to here should be viewed as buying opportunities. 

WTI set for further gains
A bounce off the 50-day SMA has put the buyers back in charge, with the price back inside the rising wedge that has dominated in the year thus far.

A move back above $50 targets $51.40 in the short-term, while on the monthly chart a glimpse at the steady recovery suggests that we could see gains extend towards $60 in the longer-term. 

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