Gold could test $1,300 per ounce in the coming weeks, technical analysis shows.
Gold prices recently found a nice bottom again around $1,180 an ounce. Notice that the precious metal's price breached resistance at $1,220 an ounce last week. That's the same level we mentioned recently in our weekly commentary.
Gold's price should remain buoyant, and we could see further upside toward $1,250 this week and potentially $1,300 in coming weeks.
The market looks to have enough momentum to trade $50 to $100 higher in a short time. That would take gold's price toward $1,300 an ounce.
As long as gold trades above the recent lows around $1,180 an ounce, traders can look to buy on weakness.
We continue to remain bullish on the price of crude oil as long as West Texas Intermediate remains above the support levels at $49.30 and $50.80 a barrel.
Note that crude oil has sold off, so investors should buy on weakness, so long as crude remains above those support levels. Last week provided such an opportunity, although there wasn't much in the way of price action confirmation on the daily chart.
As we can see below, however, there was a huge weekly pin bar reversal on the weekly chart, which reveals the conviction of the bulls. The market is still having trouble at the resistance level of $54 a barrel, though. If the price of WTI crude can breach that level and close above it, then there will be the potential for crude oil to rise to recent highs and beyond.
We view this market as a buy on pullbacks this week, but it still remains choppy, so we're waiting for a signal to form on the daily or four-hour chart before we establish a long position.