Technical analysis: key levels for gold and crude

The run lower in gold looks to have ended, while oil prices tread water after their recent move higher.

Man inspecting barrels
Source: Bloomberg

Having bounced so far this morning, defending the $1220 level once again, we now look to see if gold prices can take advantage of a weaker dollar to move back towards $1250.

A close below $1220 would signal significant weakness ahead, perhaps down to $1200 or $1190. 

The drift downwards continues here, and with the price back below $50 there will be a rush of people decrying the end of the latest rally.

However, with the price oversold intraday, some brave souls might opt to use this as a buying opportunity, with a target of $51. A close below $48 would head towards $46.50. 

A similar picture prevails here, but with a long weekend looming it is likely we will just see a drift rather than firm direction. A resurgent USD could torpedo a rally, but overall as long as the price holds above $48.30 then the next move is higher, back above $50 and on to $51.

From here it heads towards the $58.30 area. 

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