Technical analysis: key levels for gold and crude

Gold is looking to extend last week’s rally, while oil shows no sign of stopping ahead of the OPEC meeting this week.

Gold ring
Source: Bloomberg

Gold holding strong

The uptrend is intact for now, with gold holding above the uptrend line established over a week ago. However, momentum appears to have stalled, with a potential lower high at $1257.

The bulls need to keep the price above $1245 to avoid the impression that a turn lower is at hand. A close above $1264, the highs from last week, would mark a fresh breakout and clear the way to $1280 and $1300. Below $1245 the price could head back to $1239, and even down to $1225. 

WTI going up ahead of OPEC meeting

The rally off the lows near $44 goes on, with $51.36 and then $51.99 the next areas of potential resistance. Beyond this a push back to $53 and the declining trendline off the February highs could be in the offing for the WTI.

Likely to provide support is $50, while to create a new lower low in the current trend higher, it will need a drop below $48.30. Pre-OPEC expectations (meeting on Thursday) could well keep driving this higher until the meeting is out of the way. 

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