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Technical analysis: key levels for gold and crude

Commodities are starting the week on the front foot, with talk of more oil production cuts providing a strong boost. 

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mining figure
Source: Bloomberg

Gold buyers look to be in charge again

The steady gains from last week’s low have continued, with gold nudging above $1230. From here we would look to $1240 and $1246, the latter being the 200-day and 50-day simple moving average (SMA).

Overall, the buyers look to be in charge once again, with the price action of the last few sessions indicating a turnaround in sentiment and momentum. It would take a drop back below $1215 to reverse this. 

WTI daily close below $47.12 necessary for a bearish outlook

Comments from oil ministers about further production cuts continue to supercharge the WTI rally, with the $49.40 level now being tested.

On the daily chart we then look to $50.52 and $51.36, with retracements intraday continuing to provide buying opportunities. A daily close below $47.12 is the necessary prerequisite for a return to a bearish outlook. 

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