Technical analysis: key levels for gold and crude

Dollar strength continues to make life difficult for commodities, with no sign of a rebound for gold just yet. 

Gold bars
Source: Bloomberg

Gold back to selling  

There were signs of a recovery for gold yesterday, with the price attempting to rally off the lows, but it looks like the selling is resuming today.

An area to watch is $1205 as a break here clears the way to the March lows at $1195. Below this $1180 comes into play. Bulls will be disappointed unless they can post a daily close back above $1214, and this might then suggest a move back to $1230, the 200-day simple moving average (SMA), and then the $1240 area.

WTI struggling to reach $45

The past three sessions on WTI have seen pushes towards $45 defeated, and that is playing out again today.

The next areas to watch on the downside are $44 and then $42.80. Selling the rallies still appears to be the way to go, unless the price recovers back above $45.25. 

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