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Technical analysis: key levels for gold and crude

Gold sell-off looks to provide a buying opportunity, while crude weakness continues to persist after recent selling.

Oil pump
Source: Bloomberg

Gold weakness could be short-lived

Gold has been selling off overnight, with the price having passed the 61.8% retracement this morning. Given the recent uptrend, there is a good chance we could see the price begin to rally once more from here.

On the wider perspective, the inability to break through $1296 provided mixed signals as to whether this trend will continue. However, it still looks attractive to be long at a deep retracement as long as we do not break below $1259.

Gold price chart

Brent continues to pull back

Brent has suffered overnight, with the recent downtrend picking up momentum once more. To the downside, the next level to watch out for is $46.70.

For now, we have a clear downtrend in play so it makes sense to sell on rallies as long as we don’t see a break through $50.36 resistance.

Brent price chart

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