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Technical analysis: key levels for gold and crude

Gold is out of favour again, falling to $1200, while oil has been boosted by hopes of an output cut.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-11-12T10:09:53+0000

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Gold returns to $1200

The resurgence in the dollar and in equities has meant that gold is out of favour once again. The price has fallen through the $1214 support zone and moved back below the 50-day simple moving average (SMA) of $1210.

While oversold intraday, any rally that fails to move back above $1220 could be a selling opportunity, and even a sustained bounce needs to clear $1235 to suggest that the bulls really are back in charge. Further declines target $1190 and $1180.

Gold chart

Gold chart

Gold chart

Output cut hopes spark WTI bounce

Reports of a Saudi plan to cut output have given hope to WTI bulls this morning, with the price bouncing from an eight-and-a-half-month low.

Last week saw strong selling pressure around $62.50, so a close above here would be needed to suggest that a sustained bounce is underway. If the bears can hold the price below this then a new lower high has been created and the downtrend remains intact, potentially testing last week’s low at $59.41.

WTI chart

WTI chart

WTI chart

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