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Technical analysis: key levels for gold and crude

Rallies at the end of last week for gold and oil have run out of steam, with prices under pressure once again.

Oil piping
Source: Bloomberg

Gold retracement met by buying

A spike late on Friday saw the gold price recover and move back to the 50-hour simple moving average (SMA) at $1234. A small retracement in the early part of this morning has been met by fresh buying, but the downtrend from the 27 February high at $1263 is still intact.

Unless the price moves back above $1245 the approach here is still to sell the rallies. A fresh drop would head towards $1220 and then the first weekly support at $1217. 

WTI seems to favour a sell the rallies approach currently

Friday’s WTI rally has fizzled out and the price is moving lower once again. For now the buyers are defending $53, but a drop below Friday’s low of $52.75 would see fresh downside momentum develop. Selling the rallies would seem to be the prudent approach, at least until we see a clos back above $54. 

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