Technical analysis: key levels for gold and crude

Gold and oil are both enjoying the benefit of a weak USD, but gold’s run is about to hit a key trendline. 

Gold bullion
Source: Bloomberg

Gold in the balance
The metal finds itself at a crucial point – it is rapidly heading towards the downtrend line from the highs of 2 May, so a failure to push on through $1285/$1290 would indicate this is another rally to be sold.

In this instance downside targets would be $1260 and then $1250, the 50-day simple moving average (SMA). A close above $1290 would then indicate another push to $1300 is in play.

WTI aims higher
Further strength this morning in WTI will be pleasing for those that bought Friday’s dip around $46. Now the next target is the November high at $48.27, and then on to the October high at $51. It would take a move below $44 to turn the outlook even slightly bearish. 

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