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Technical analysis: key levels for gold and crude

Gold begins to show signs of weakness, following a recent bullish reversal. Meanwhile, Brent looks set for further upside after recent consolidation. 

Oil barrels
Source: Bloomberg

Gold breaks below trendline support

Gold has broken below a notable support level this morning. There has been a rising channel being negated with a move below $1291, which points towards further downside. With gold showing some signs of bottoming out last week, we could be seeing the beginning of a retracement from the $1261 low.

As such, keep an eye out for the Fibonacci retracements between $1271 and $1283, as possible bullish reversal areas. However, while we could still see further downside, there is a strong chance that this weakness is a retracement, before we move higher once more. 

Gold chart

Brent pushing higher towards key resistance

Brent is turning higher once more this morning, following on from a retracement lower yesterday. The recent double bottom formation pointed towards a continuation of the wider uptrend following the recent retracement.

With that in mind, as long as we do not see the price break below $55.82, then this current uptrend is intact. 

Brent chart

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