Technical analysis: key levels for gold and crude

Commodity prices are awaiting the Fed meeting this evening, which could set off some volatile moves. 

Oil pump
Source: Bloomberg

Gold depending on the Fed meeting

Much will ride on the outcome of the Federal Reserve meeting tonight and what the US dollar does. However, gold bulls are doing a commendable job of holding the $1263 support area, with a dip to the 50-day simple moving average (SMA) at $1260 bringing out buyers.

A close below $1260 would suggest further losses towards $1240, while a bounce on a potentially dovish Fed could see the metal head back to $1295, which is an area of key resistance.

WTI needs to hold $45.40

Gains were knocked back yesterday for WTI but if the price can hold the area around $45.40, the potential for a bounce is still there.

The first target would be a push above the weekly pivot at $46.67, and then on towards $48. A loss of the lows from last week around $45.40 would suggest a drop back to the May low at $44. 

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