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Technical analysis: key levels for gold and crude

Dollar strength seems to have gone for the gold rally, but oil continues to find buyers.

Oil pipes
Source: Bloomberg

Gold bears take control

Gold has, it seems, given up the ghost and now looks set for further losses. Having failed to hold $1300 over the past two weeks, the price now looks to be headed to the $1256 lows from the beginning of the month.

Intraday rallies will likely continue to meet selling pressure even up to $1290. A close above $1300 is needed to reverse the negative outlook. 

WTI keeps on rising

The price for WTI is building on Friday’s bounce to push higher, so further gains should challenge $52.50 and then $53.00.

Dips back to $51.00 should continue to find buyers in the short-term, while a deeper retracement would find buyers at $50.50 and then $49.50.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.