Technical analysis: key levels for gold and crude

Oil prices remain in retreat, while gold continues its ponderous rangebound trade from last week.

Gold bullion
Source: Bloomberg

Gold in the balance

Neither buyers nor sellers are displaying much conviction at present in gold, with the price still bouncing along above $1250 but unable to move meaningfully above $1265.

Without a firm push higher, this is looking more and more like a consolidation ahead of a new move down to $1200. Bears could continue to put in fresh shorts with stops around $1265, with a view to taking advantage of a drop to $1200.

Brent may be in for a bout of weakness

Having failed to maintain momentum last week, the price is now headed back to support around $51.50.

A move below here signals the start of sustained weakness, towards $50 and then the 50-day simple moving average (SMA) at $49.18. A rally must break $53.50, and then this would put $60 in sight. 

WTI bounce fizzles out

Friday’s push to $51.50 fizzled out, so now we look to the support zone around $49.50-$50, with a break below here marking a definite move lower, perhaps towards the 50-day SMA at $47.11.

Buyers need to get the price back above $51 in the first instance, and then break through the high at $52 to maintain the rally. 

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