Technical analysis: key levels for gold and crude

Gold’s pullback goes on, but there may be signs of a recovery.

Oil barrels
Source: Bloomberg

The price did move as low as $1320 yesterday, but the recovery above the Tuesday/Wednesday low of $1330 will be encouraging.

Dips such as that seen over the past few days have been taken as buying opportunities in gold’s steady leap higher, and if another bounce occurs we look to $1350 and then $1375 as upside targets.

A break back below $1330 would head towards the Thursday low at $1320, and then on to $1305.

Gold chart

Brent has fought furiously to hold above $46.50, but upward momentum has been distinctly lacking. A break below $46.50 would head towards the 100-day simple moving average (SMA) at $45.35, and then down to the 200-day SMA at $42.65.

Any rally needs to clear $48, which would then mean the price heads towards $49.50, the 7 July high.

Brent chart

We have seen a steady recovery off the lows of the week, but the price has not been able to muster much strength to head higher.

If $45 continues to hold then the next area to watch is $47, and then above here is $48.26. A drop through $45 would head towards $44, the 100-day SMA, and then down to $42.60.

WTI daily chart

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