Technical analysis: key levels for gold and crude

Hopes of a gold bounce appear to have been dashed, while oil now needs to decide whether it wants to break key resistance.

Gold
Source: Bloomberg

Gold struggles to make gains

The price continues to hover above $1257, suggesting at least that the consolidation period goes on.

Dips down to $1250 and then $1240 could find some support, while a drop below here would head to the June lows at $1200. A bounce needs to clear $1270 and then $1280. 

WTI moves higher

Yesterday’s Vladimir Putin-inspired bounce took the price back to $52, where the rally stalled back in June. The next target to watch would be $54.13 and then a big move would take the price to $61.77, not seen since May of last year.

The price could drop to around $46 and still be in the uptrend off the February lows, with some support likely around $50, and then down to the 50-day simple moving average (SMA) at $46.83. 

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