Technical analysis: key levels for gold and crude

While oil has surged this week, gold bulls appear to be losing their grip on the rally. 

Gold bars
Source: Bloomberg

Gold heading down  

Gold surrendered a lot of ground yesterday, falling back below the summer descending trendline. If downside momentum gathers pace, a break of $1240 could open the way to the 50-day simple moving average at $1228, and then on to $1215 and $1200.

A rally would run into trouble around $1247, and it will take a recover of $1250 to put the rally back on track.

Gold price chart

WTI gaining ground

Oil bulls have had a great week, with the price positively racing higher. It has recovered $50, arguably a major psychological benchmark, and now looks to be consolidating.

The next areas to watch on the upside are $50.65 and then $51.81. Potential support in any pullback could be provided at $49.50 and then $49. It will require a move below $48 to even suggest that the bears are back in control.

WTi price chart

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