Technical analysis: key levels for gold and crude

A stronger dollar has sent gold plummeting, while oil is trying to hold its ground after a strong run higher.

Gold bullion
Source: Bloomberg

Gold may be in for a rebound

Gold’s attempt to build a base above $1200 for a move higher was rudely interrupted yesterday. With the price now below this key support we could see a move towards $1110.

However, with the price so heavily oversold some kind of rebound, if only as far as $1220, is still possible. If a rally does materialise, it could go as far as $1250 in the short-term. 

Gold price chart

WTI uptrend remains intact

The uptrend remains intact, with weakness yesterday still being bought.

However, the price now needs to maintain momentum, and push on above Tuesday’s highs above $49, and then on through the key $49.50 area.

A downtrend would arguably begin if the price drops through $47. 

WTI crude price chart

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