Technical analysis: key levels for gold and crude

A stronger greenback is hurting commodity prices, stymying attempts by gold and oil to recover lost ground. 

Oil pump figure
Source: Bloomberg

Gold under selling pressure

Gold continues to succumb to selling pressure, dropping back below the key long-term downtrend line that runs back to the 2011 high. A steep retracement over the past few days could now see buyers emerge, as they look to hop on board the rising trend off the July lows.

A close below $1264 would be another bearish development, and raise the prospect of a move back to the area around $1250.

Gold chart

WTI remains below the 100-day SMA

WTI’s price bounced off the $47.12 support level yesterday, but remains stuck below the 100-day simple moving average (SMA) at $48.18.

We would need to see a close back above this indicator to become more bullish. A close below $47.12 likely opens the way to $46.60, the 50-day SMA. 

WTI chart

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