Technical analysis: key levels for gold and crude

Oil prices have found support, but for gold the outlook still looks bleak.

Gold bars
Source: Bloomberg

Gold struggles to move higher

Yesterday, $1315 provided good support, but the price appears to be running out of steam at $1322, with the possibility that any drop takes us back to $1315 and then down to key support at $1305.

An upward move would encounter possible resistance at $1320, the peak from yesterday, while above here the next areas to watch would be $1335 and then $1345. 

Brent looks to push up

So far this week $47 has prevented any further downside from materialising, so a move below here would risk a drop to $45.30. If a base has formed at $47 then the next target for Brent is Tuesday’s peak at $48.50, and then above this the $50 level where gains faltered on 8 September.

WTI resists further downside

For WTI, $45 is where the buyers have managed to prevent further downside. A bounce from here would target $46.50 and then $47.50. Below $45, support is possible around $44 and then $43. 

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