Technical analysis: key levels for gold and crude

Gold’s remarkable run continues, while oil prices have turned lower once more. 

Oil rig
Source: Bloomberg

A weaker dollar and increased risk aversion have done wonders for gold, which has enjoyed a nearly straight line move since 3 June. A close above $1305 today would ignite fresh bullish momentum, with the next area to watch being $1350.

If the forward movement fails and the price falls back below $1300 we could see a rapid drop in the direction of $1280 and then the 50-day simple moving average at $1254. 

WTI has finally dropped below the rising wedge that has been in place since December last year. A further move downwards heads towards $46.19 and then $42.60, while a recovery back inside the rising wedge would encounter resistance at $48.50, and then on to $49.30. 

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