Technical analysis: key levels for gold and crude

Risk aversion has put gold back on the front foot, while oil looks to build on yesterday’s holding action and move higher.

Gold bars
Source: Bloomberg

Gold buyers remain in control
Gold has moved higher this morning, as it continues to hold the rising daily trendline. A close above $1250 will suggest that we are in for another test of the $1270 - $1280 zone where momentum topped out so far this month.

The fact that the trendline held suggests buyers are still in control, so if the RSI can turn higher today the outlook moves back to being bullish. 

Gold chart

WTI looks to add more upside
Oil held its ground yesterday and is doing so again this morning, but has been unable to push on beyond the highs seen last week.

So long as the rising trend holds we can still expect further upside, heading towards $45, then $48.30 and $51. 

WTI chart

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