Technical analysis: key levels for gold and crude

A recovery in risk appetite has seen gold suffer, while oil is faltering at key resistance.

Gold mining
Source: Bloomberg

Gold performs handbrake turn

Gold is suffering a sharp retracement after yesterday’s outbreak of selling in risk assets fades.

The $1275 low from earlier in the week still holds, but at present it looks like further downside is possible, with $1264 and then $1258 coming into view. A close above $1295 is needed to reverse the outlook.

WTI drops back from highs

The rally for WTI has faltered in the $52.00-53.00 zone, with dip buyers yet to step in. A move below $51.36 could signal a further drop, with $50.50 and then $49.50 coming in as potential support.

A firm push above $53.00 is needed to confirm a breakout, and this would leave the price headed to $54.00 and then $55.00.

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