Technical analysis: key levels for gold and crude

There is still no real sign that gold has bottomed out, while oil prices are recovering from the pullback yesterday.

Gold bars
Source: Bloomberg

Gold rally met by more selling

Yesterday, gold hit its lowest level since February, testing the area around $1150. A rally overnight back towards $1167 has been met with fresh selling, so it seems gold bugs will still have to wait for the price to form a base.

The next downside targets below $1150 are $1145 and then $1139. A bounce has to clear $1170, then $1180 and then on to $1200. 

Brent buyers still appear to be in control

After gapping higher yesterday the price drifted lower, although it remains above the $55.40 area. A further move higher would target $57.03 and then $58.33.

Since the OPEC deal, weakness has been met by firm buying, and there is little sign yet the buyers have lost control. For this to happen we would need to see a daily close below $52.83.

WTI dip met by fresh round of buying

A dip yesterday to $53 has been met with fresh buying, and now we look to see if the price can break $54.62 and then on to $55.92.

A move lower would have to push below $52, the previous critical resistance area, to suggest the price is due a longer-term pullback.

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