Technical analysis: key levels for gold and crude

Gold remains popular as investors shun equities, while oil prices are weaker for another day, although still well within their current uptrend. 

Oil pipeways
Source: Bloomberg

Gold
​The price continues to climb, marching higher again this morning, with a close above $1280 putting it on course for a test of the 2016 high just above $1300.

The biggest risk to a continuation of this rally is a stronger US dollar, but for the moment dips should see fresh buying as and when they appear. It would take a move back below $1260 to nullify the upward trend. 

Brent

Weakness in oil continues, but downside could be limited as a result of rising trendline support around $49. A close below here could find support at the rising 50-day simple moving average ($47), while below this the next area to watch is $43.40.

Any rally from here first targets the peak seen last week close to $53, and then on to $54.50.

WTI

A similar picture prevails here, and with the price still well within the rising wedge formation, the uptrend from the February lows is still holding. A move back into oversold territory, as we are seeing now, is likely to bring out fresh buyers, looking for a move back above $40 and then on to $51.40.

A close below the bottom end of the wedge, sub $47.50, might act as the catalyst that bears are looking for. 

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