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Technical analysis: key levels for gold and crude

More gains look likely for gold, while oil has fallen below a vital support level.

Steam-injection oil pipes
Source: Bloomberg

Gold rally creates the perfect buying opportunity

The rally goes on here, with the weakness into Friday’s close having provided the ideal buying opportunity. Now the price must close above $1200 to maintain momentum and open the way to $1207 and then $1228. A close below $1170 is still the prerequisite for a bearish turn here. 

WTI finds short-term support

US light crude dropped back below the key $52 level, but has found short-term support above the second weekly pivot at $51.09. A drop below here would target the 50-day simple moving average at $50.90, and then down to $49.58. Bulls would like to see a close back above $52 as the first step in a new rally to $54. 

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