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Technical analysis: key levels for gold and crude

Commodities have been relatively immune to the general rout in equity markets, with gold seeing some buying after an overnight dip and oil still up from the lows of last week.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-12-05T10:14:38+0000

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Gold dips but upward move intact

Over the past week, the rally in gold has run into resistance, but for the moment a new higher low seems in the offing.

Further gains target the $1260 area, with yesterday’s high at $1241 a near-term target. A move back below the overnight low around $1233 would likely signal a deeper retracement within the short term, although the rising trend from the August lows is intact.

Gold chart

Gold chart

Gold chart

WTI stays aloof from the sell-off

While the WTI price declined from the highs, the move higher is still intact, with a higher low being created intraday.

If $52 continues to hold, then a push back to $54 seems likely. The bullish view persists until we see a move back below $51, which would suggest a retest of the lows around $50.

WTI chart

WTI chart

WTI chart

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