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Technical analysis: key levels for gold and crude

A bounce last week for oil provided another chance for bears, while gold’s fall continues apace.

Oil figure
Source: Bloomberg

Gold continues the downside

A break below $1214 support points gold towards further negative momentum, with $1195 and the lows of March now in play.

Below this, $1180 comes into play, although the slowing outflow from gold funds might suggest that the slump has run most of its course. However, we would need to see a close above $1214, to restore a more bullish picture. 

WTI needs a rally above $45.25 for a bullish development

Friday’s rally off oversold levels has already petered out, with a retracement providing a fresh shorting opportunity for WTI.

A break below $43.97 would then open the way to $42 and potentially lower. It needs a rally above $45.25 to begin to shift the outlook to a more bullish one. 

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