Technical analysis: key levels for gold and crude

A weaker dollar continues to be the main driver of higher commodity prices, putting the buyers back in charge.

Gold bars
Source: Bloomberg

Gold moves higher
A dip yesterday saw a modest move higher develop, with signs of a follow-through above $1250 today. Now the price needs to clear $1280 to head towards $1300.

It looks like sellers will be disappointed unless they can get the price back down towards $1200, and even then a daily close below $1190 is needed to confirm the beginning of a bigger move lower.

Brent targets October highs
Yesterday’s strong finish for Brent puts the buyers firmly in charge, with the next target being the area around $55, the highs from September and October last year. Dips back towards $49.50 may continue to see fresh buyers enter. 

WTI puts bulls in charge
The new area to watch will be around $51, the highs from October 2015. A close above here opens the way to new highs for the year around $55 and then $61.30.

Sellers will likely be disappointed unless we see the price move back below the lows of the beginning of the month, which might then suggest a drop to $46. 

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