Technical analysis: key levels for gold and crude

Gold may well have ended its pullback and could be poised to move higher, while a bounce back above the 200-day SMA for brent suggests a further bullish move.

gold price
Source: Bloomberg

Gold moves higher

Having stabilised around $1260, gold has begun to move higher, although it needs to move above $1270, the high from Wednesday, to provide confirmation of bullish strength.

Above $1270 the price will head towards $1280, then $1296 and $1300. A loss of $1260 would suggest a bigger pullback, taking the price down to $1250 and then $1240.

Brent bullish outlook

Brent rallied back above the 200-day simple moving average (SMA) yesterday ($51.60) suggesting that buyers are returning once again.

A bounce to $53 and then $53.81 (the 50-day SMA) would be the first target to look for. It would take a close below $51 to reverse this bullish outlook.

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