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Technical analysis: key levels for gold and crude

Gold’s ascent continues, while WTI looks set for more downside, after dropping back below key resistance.

Oil pump
Source: Bloomberg

Gold above 100-week moving average

By this point in 2016, gold had risen by over 10%. This year is not quite as bullish, but the price is still 7% higher, and is back above the 100-week moving average ($1202).

Friday’s dip was furiously bought, pushing the price to highs not seen since early November 2016; it may now be due another pullback, but so long as $1210 holds, it will simply be a dip in the trend. Above $1234 the price will head towards $1248 and then the 200-day simple moving average at $1263. 

WTI bulls still awaiting breakout

With the price back below $54, it looks like oil bulls will have a little longer to wait for a breakout. Now, with momentum indicators turning lower once again it looks like the bears are still in control. The first area to watch is $52.80, and then down to $52 itself. 

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