Technical analysis: key levels for gold and crude

Gold’s decline continues, while oil’s rally is taking a break for the time being. 

Source: Bloomberg

Gold heads lower

There has been little respite for gold bulls over the past couple of days, with a bounce yesterday simply bringing out fresh sellers.

All eyes are now on the $1257 area, where prices bounced in mid-June, and around the current 200-day simple moving average.

A break below here would head towards $1200 itself. Short-term, a rally would need to clear $1277, and then push on back to $1300. 

Brent rally slows down

The post-OPEC rally has slowed somewhat in recent days, with the price ending yesterday off its highs. We would need to see a move above $52.20 to maintain upward momentum, while a move below $51.10 would indicate that a new downward move is underway. The June high at $53 remains the key resistance level to watch.

WTI struggles to push higher

Here too the rally looks to be weakening, at least relative to recent price action. The bulls need to hold the price above the August high at $49.40 to avoid a new downward move, and on the upside, $50.60 and then $52 are the resistance areas to look out for. 

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