Technical analysis: key levels for gold and crude

Gold prices continue to build on the recovery seen yesterday, while oil’s upward move is still ongoing. 

Oil barrels
Source: Bloomberg

Gold back in bullish mood

Gold bulls will certainly welcome the move back above the 100-day simple moving average (SMA) at $1225.7. The price has pushed back above $1226 as well, a key area over the past week, so with this accomplished we now look to see if it can clear $1235.

The first target to watch for on the daily chart is $1239, and above this the 200-day SMA at $1246. This week’s low around $1215 was above the $1195 low of March, so the uptrend off the December lows is intact. The gold bulls seem to be in charge once again.

WTI expected to go higher

Oil has posted an impressive recovery from the lows of last week, moving back above the key $47.12 level on Wednesday and hitting the rising trendline from the April low.

Now it needs to push above $48.32, and from there it will target $49.40. As long as the price holds $45.80, we expect further gains into next week. 

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