Technical analysis: key levels for gold and crude

It has not been a good week for gold, which is challenging a key uptrend again. In oil markets, WTI is recovering after steep losses earlier in the week.

Gold bulls face their Waterloo

The gold bulls tried valiantly, but a strengthening US dollar has seen the commodity hit hard once again. It is now testing the post-December 2015 rising trendline, as it did at the beginning of July.

If it closes below this, and then falls below horizontal support at $1236, then $1213 and $1204 will come into play as possible targets. A rally now will have to fight its way back above $1248 and then the high of the week at $1265 to suggest a broader rebound is in play.

WTI fights to hold support

WTI has recovered from the lows of the week around $68.50, with price action over the previous two days suggesting that there is significant buying pressure at this area.

A close below $68.34 would mark a new bearish phase, bringing $64.20, $63.36 and then $62.56 into play. A fresh rally targets $72.88, $74.08 and then $74.95. 

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