Technical analysis: key levels for gold and crude

Gold has hit a crucial support level, putting it at a potential turning point, while oil’s surge shows no sign of stopping. 

Oil
Source: Bloomberg

Gold starts a bounce from the support zone

Gold bulls need to step up, and soon. The price managed to hold the $1264 support zone that was tested at the beginning of the month, and for now another bounce from here is in progress.

A close above $1285 would create a new intraday higher high, and put a more bullish spin on the outlook. If the price closes back below $1264 then we have a bearish picture, with $1246 and $1239 in play. 

WTI reaches highest level for months

The surge in price has carried WTI to a level not seen since April. While some skittishness is likely, any pullback towards $52.00 remains a buying opportunity.

Indeed, any drop that holds above the October low at $49.60 fits within the rising trend seen since June.

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