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Technical analysis: key levels for gold and crude

Gold continues to suffer amid a wider risk-on market bias, while crude sees Brent and WTI trading either side of a major level of support and resistance.

Oil refinery plant
Source: Bloomberg

Gold downturn continues apace

Gold’s post-election deterioration remains well established, with price action on a very consistent downtrend. With that in mind, further downside seems likely, where an hourly close above $1230 would provide a clue that we could be about to see some form of bounce.

However, even in that case, we would be looking at a likely retracement of the deterioration from $1265. That would need to be broken for things to truly start looking rosier.

Until then, investors are likely to continue selling havens.  

Gold price chart

Brent retests key resistance level

Brent has managed to break and close below the crucial $45.35 support level, providing a signal a strong leg lower could be upon us. This morning we have seen price retest that level as new resistance, with price subsequently weakening.

As such, a bearish outlook is in place, with a break back above $47.29 required to negate this view. 

Brent crude price chart

WTI approaches key support level

Unlike Brent, we have not seen WTI fall through its key support level, on this occasion $43.22. With price currently above that level, it provides a question mark over the Brent sell-off.

As such, an hourly close below $43.22 would provide a bearish view for WTI and a bearish confirmation for Brent. 

WTI crude price chart

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