Technical analysis: key levels for gold and crude

Gold has failed to push on, but oil prices are still in fine form.

Oil pipe work
Source: Bloomberg

Gold slumps
A new lower high was made yesterday, so for the time being it looks like we may see more gold weakness, perhaps down towards $1240 or on towards $1235 and the rising trendline. A bounce will need to push on to $1265 and then $1280. 

Yesterday’s WTI move puts the price above the key $40 level, which was support in mid-November last year. The 200-day simple moving average (SMA) comes into view now at $42.45, coinciding with the lows of October around $42.60. Dips back towards the 200-hour SMA ($38.37), or even a repeat of Tuesday’s sell-off, should be viewed as ideal buying opportunities. 

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