Technical analysis: key levels for gold and crude

It looks like oil will be under pressure despite a strong finish last week, while gold is doing its best to rally. 

Gold
Source: Bloomberg

Gold could see $1119

Once again gold has rallied off its lows, but having moved higher it may now become a target for fresh selling. A failure to move on above $1142 could see a turn lower, targeting the key level of $1127 before heading on to $1119.

If it does break $1142 then the price could target $1156. Any further rally really needs a shift in the US dollar strength that has dominated since the election and intensified following the Federal Reserve meeting last week.

Brent eyes early-December highs

The price rallied hard into the close on Friday, recovering lost ground, but so far it is unable to break above $56.17. A failure to hold here could lead to a test of $55.30, and then on to $53.52 and potentially lower for Brent.

Above $56.17 the price would target the early-December highs towards $57.80.

WTI could drop to $50.88

The price has turned lower after a rally into the end of Friday. An inability to get past $53.55 raises the prospect of more selling ahead, potentially heading down to $52.56 and the low of Thursday at $50.88.

Any rally has to clear $53.55 and then push on to the highs of last week at $55.13 for WTI.

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