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Technical analysis: key levels for gold and crude

Gold is flying this morning, breaking a key trendline, while oil is fighting to hold key support. 

Gold bar
Source: Bloomberg

Gold up and up

Fresh dollar weakness is helping drive gold higher, with the price now through the descending trendline that held at the end of February.

Now the bulls must post a daily close above $1264, which would also put it back above the 200-day simple moving average ($1260). The next big area is $1307, the early November 2016 high. Short term, we would look for support around $1240 and then $1225. 

WTI depending on OPEC’s actions

The $47.60 mark has held as support for a number of sessions for WTI, so while this holds a bounce back towards $49.50 in the first instance that could be seen. If momentum builds from here and $49.50 is recovered then a move back to $50 and higher is a possibility. The next stop is $51.80. 

On the downside a loss of $47.60 could spike a bigger move, towards $44.51 and then $43.08. Much of this will likely depend on whether OPEC pushes for more cuts to production.

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