Technical analysis: key levels for gold and crude

Gold has fought hard to hold above the lows of last week, while oil seems to have stumbled and now looks poised for further weakness.

Gold bullion
Source: Bloomberg

Gold dips meet buying again

For the second time this month the price dipped to $1160 and was met by fresh buying. The downtrend has yet to come to an end but if this area holds then a base may form.

Gold then has to get above $1180 to set itself up for a challenge of the $1200 zone once more. A drop below $1160 still targets $1130 and then $1110.

WTI fails to close above $52

Despite the bounce yesterday the price failed to close above $52.

Momentum could now start to push the price lower, and in this case we would look to $49.50 and then down to $48.22, the 50-day simple moving average (SMA). It needs a firm close above $52 to challenge the $54 level. 

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