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Technical analysis: key levels for gold and crude

Gold has regained ground overnight, bringing the price back into a critical resistance level. Meanwhile, Brent has continued its descent, falling into the key $50 mark.

Gold mining
Source: Bloomberg

Gold rallies into major resistance zone

Gold has broken sharply higher overnight, following on from yesterday’s Federal Open Market Committee (FOMC) meeting. This has taken us back into a crucial resistance zone.

A break above the $1292 resistance level is needed to continue the creation of higher highs. Should that occur, we would be looking towards the $1296 resistance zone, which if broken, would bring a bullish picture to the longer term. As such, whether we can break through the $1292-$1296 zone will be a major determinant for whether this market becomes bullish for both the short and medium/long term.

Gold price chart

Brent falls into key support level

Yesterday’s gains have dissipated for Brent, with the price falling back into the 200-period simple moving average (SMA) and $50 support level.

That level is a historical support and resistance level, alongside the near-term swing low. The ability or inability to break below that level should provide a guide for the day. An hourly close below that level should bring a signal of further impending downside. 

Brent price chart

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