Technical analysis: key levels for gold and crude

The dollar’s rise continues to hurt commodities, with no sign of bullish momentum returning. 

Gold bars
Source: Bloomberg

Gold descent continues

The fall goes on here, but the price is now close to the $1200 level, which was key support back in June. As long as the dollar continues to strengthen there seems little chance of a turnaround.

There is some potential support at $1190, but below here we could see a swift drop to $1070. Oversold conditions persist, but we’ll need a move above $1230 to confirm a bounce is in play.

Brent falters at 200-day SMA

The rally faltered at the 200-day simple moving average (SMA), and it now looks as if we could be about to retest $45.35 and then $44.10.

A rally must clear $48, which would open the way to $50.75. Below $44 the price could move towards the August lows at $41.50.

WTI may drop to $44

Here too the price is under pressure, and unless it recovers the 200-day SMA at $46.20, we could see a drop back towards $44, which could then see a further drop to $40, last seen in early August. Above $46.20 the index would head towards $47.89, the 50-day SMA. 

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