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Technical analysis: key levels for gold and crude

Gold prices have recovered off the lows of last week, while oil appears to be in retreat after its strong September rally. 

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Gold bars
Source: Bloomberg

Gold eyes $1300

Having rallied sharply on Friday, gold might be in a position to push higher. If the price can hold above $1260 and the 200-day simple moving average (SMA) then we would look for the chance to buy weakness with a view to a general push back to $1300.

A move down from the current level would head towards $1250 and then to $1200.

WTI could drop to $48

The drop on Thursday, and additional weakness on Friday suggests that we may see more declines, as the OPEC effect wears off.

Indeed, a bounce today could provide a fresh selling opportunity, especially if the price pushes on below $49.50.

The next target would be $48, the peak from mid-September. Below this the price would head towards $46.67 for WTI.

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