Technical analysis: key levels for gold and crude

Commodity prices are rallying thanks to a falling dollar, engendered by Janet Yellen’s notably dovish speech yesterday.

Gold bullion
Source: Bloomberg

Dollar weakness has revised the outlook here, with the price now leaping higher. If it can sustain gains and hold above $1240, we look to $1250 and then $1270 as upside targets in the short-term.

A real breakout will come if the price can clear the monthly high above $1285, which would open the way to $1307 and the January 2015 high.

The price has stabilised around $38, and with the dollar weaker we may see the beginning of a new upward move, although it may take a move above $40 to confirm this.

If this does occur, the next target is the March high at $42.60. A failure to hold $38 could see the price move back towards the 100-day simple moving average at $36. 

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