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Technical analysis: key levels for gold and crude

Gold has been drifting lower after yesterday’s gains, yet further upside looks likely. Meanwhile, recent crude oil weakness looks likely to persist.

Oil barrels
Source: Bloomberg

Gold pulling back, yet further upside seems likely

Gold has been pulling back since yesterday’s rally into a new nine-month high, with the rebound overnight coming short as the price heads back towards the low of $1305. A break back below that level would point towards a likely continuation of this short-term weakness.

However, until we see a break below the $1275 level, the current period of weakness would look likely to be a short-term move before we push higher once more.

Gold chart

Brent breaking lower once more

Brent is turning lower this morning, with the price looking likely to follow up on the triangle breakdown seen on Monday. A break below the $51.00 level would provide confirmation of that move.

Ultimately, a bearish outlook remains in play unless the price breaks above the $52.43.

Brent chart

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