Technical analysis: key levels for gold and crude
Oil is falling in sympathy with equities but gold prices have found the strength to push to a one-week high.
Gold returns to one-week high
The pullback in equities has aided the cause of gold, which has rallied off the post-August trendline and is now back at the $1285 area that marked the limit of progress at the end of April.
Further gains target $1310, with the 50-day simple moving average (SMA) at $1293 on the way, coupled with trendline resistance from the February highs, which comes into view around $1296. The more bullish view is only replaced by a bearish one if the price drops back below $1270.
WTI steadies above $60
It is not surprising to see WTI struggling with equities also on the back foot. The price however has managed to hold the $60.00 area so far this week, which also coincides with the 50-day SMA and 200-day SMA ($61.07 and $60.64 respectively).
Further declines target $59.40 and then $58.30, while a move back above Monday’s peak at $63.00 would help reinforce the view that the pullback from $66.50 has run its course.
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