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Technical analysis: key levels for gold and crude

Gold looks to be turning lower after continued failure to take out $1300, while oil’s apparent bullishness is ebbing away. 

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Gold figure
Source: Bloomberg

Gold - no sign of pushing higher for now

We have seen gold falter at $1290 this week, with no sign thus far that another push higher is on its way. Still, the rally from the June lows is intact, so we need to see a conclusive break of $1270 to become particularly bearish on the commodity.

A close above $1300 will invalidate the bearish idea and raise the prospect of a move to $1340.

Gold chart

WTI facing series of lower highs

Momentum in WTI appeared to shift to the upside at the end of July, with the push to $50, but since then a series of lower highs have undermined the bullish thesis. Still, each week has seen long tails on the weekly chart since then, so there is buying pressure.

However, we need a push above $49.40 to really set the seal on a push higher to $50.50 and onwards. A turn lower from $48.20 would head towards $47, with a daily close below $46.60 likely to mean that a push back to $44 is in play. 

WTI chart

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