Technical analysis: key levels for gold and crude

Falling gold prices are an indication of growing risk appetite, but a retreat for oil is perhaps the fly in the ointment at present. 

Oil rig at sea
Source: Bloomberg

Gold

A drop back below the highs of last week for gold suggests a weaker close today might hand the advantage back to the bears. If this continues then we could see a return to support around $1305, the previous major resistance level.

The next resistance to any push higher lies around $1390 and then $1435. 

Gold price chart

Brent

Further weakness in Brent prices sits at odds with strength in equities, with an open below support at $46.50 suggesting more downside is on the way.

The next areas to watch will be $45 and then the 10 May low at $43.34. A bounce would need to clear resistance at $46.50 and then move on above $46.20. 

Brent crude price chart

WTI

WTI continues to push lower as well, and as a result we may see a further drop to $42.60, last seen in early May. It would need a close above $46 to reverse the negative outlook, and a further drop below the May low would suggest a bigger sell-off.

However, with daily stochastics oversold a bounce may be in the offing, particularly if the dollar continues to weaken. 

WTI price chart

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