Technical analysis: key levels for gold and crude

Oil prices are still enduring losses, although key support is holding for now. Meanwhile gold is attempting to continue yesterday’s gains. 

Gold bullion
Source: Bloomberg


The gold price managed to find support above the crucial $1300 area yesterday, so further momentum might see a push on through $1335, key resistance on 19/20 July.

A move above here would head towards the $1375 peak from earlier in the month. Weakness could see a test of support at $1310, $1300, and then on to $1280. 


The sequence of lower highs goes on here, but for now the downside is being limited by the crucial $46 support area. If this continues to hold we could see a bounce back to the $47.50 area and then $48.

If $46 is broken we could see a drop down to the early May lows at $44. Given the ongoing downtrend off the June highs, the price could move back as far as $49 and still be in a broader move lower.


The move lower from WTI’s June highs goes on, and so as a result the coming week could see further selling. So far the July lows at $44.50 continue to hold, but a move below here would head towards key support at $42.60, and such a move would also create a new lower low, maintaining the downtrend.

As with Brent, the price could see a significant bounce but still be in the downtrend; in this case $47.50 would be where the downward sloping resistance comes into play. 

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