Technical analysis: key levels for gold and crude

Oil prices have held up well despite the turmoil, while gold seems to be moving into a consolidation zone after its surge on Friday. 

Gold
Source: Bloomberg

Gold

Friday’s bounce has yet to be unwound, so while we may see a further test of $1300, as long as the price holds above here, ongoing concerns about the global economic outlook may continue to drive the price higher.

A further rally would need to take out $1347, and then push on towards the 2014 high at $1389. A move back below $1300 would risk a rerun of the losses seen last week, with a possible dip back to the 50-day simple moving average (SMA) at $126 for gold.

Brent

The price has once again found support at the 50-day SMA, mirroring what we saw last week. If it can hold above this indicator then we could see another attempt to push on to $50.90 and then the June high around $52.85.

The uptrend that has been in place since February is still intact for Brent.

WTI

Here too the 50-day SMA ($47.30) is still holding on, so with the price still in an uptrend dips should continue to be bought for WTI.

The targets here in the short-term are $50 and then $52, while below the 50-day SMA the price could find support at $46 and then down towards $42.60.  

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