Technical analysis: key levels for gold and crude

The consolidation goes on in gold, which continues to hold above $1200. Meanwhile oil looks to be on the back foot after falling from $49 yesterday.

Crude oil processor
Source: Bloomberg

Gold shows no major rally signs

The price remains above $1200 but so far there is no sign of a real rally developing. A close above $1220 is needed to confirm real upward momentum is in play.

A move below $1200 still targets $1110. Gold’s fate is in the hands of the dollar, with a pullback for the greenback the best hope for a gold rally.

WTI price slumps

With the excitement over a possible OPEC deal having worn off for now the price has dropped back from its highs above $49. It is now beginning to move below the 50-day simple moving average ($48.11).

If upside momentum has truly been lost then we would look to the rising trendline at $47.40 to provide support, with a break below here heading towards $44. 

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