Technical analysis: key levels for gold and crude

Dollar strength continues to weaken commodity prices, with the recent breakdown in gold and WTI looking likely to persist.

Gold rebound unlikely to last

Gold is attempting to regain some ground following a strong move lower yesterday, continuing the wider sell-off in play over recent weeks.

The break below $1236 pointed towards further downside to come, which has ultimately played out perfectly so far. With the price moving higher this morning, we are likely to be looking at a retracement, and thus unless the price rallies above the $1199 level, further downside is expected.

WTI fall below support points towards potential breakdown

WTI managed to break below the crucial confluence of trendline and 76.4% Fibonacci support this week, pointing towards the potential for further downside to come.

With the price consolidating this morning, it looks likely that we will soon turn lower once more. That being said, we need to see a break below the $63.41 to signify a wider sell-off coming into play.

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