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Technical analysis: key levels for gold and crude

Both gold and Brent turn lower, with crucial resistance levels capping recent upside.

Gold bars
Source: Bloomberg

Gold turning lower from key resistance

Gold is moving lower from the 100-period simple moving average (SMA) (4-hr) region this morning, in what looks like it could be another move into trendline support.

There is still a strong possibility that we are simply seeing a retracement of the $1260-1306 rally, and as such, a bullish reversal could still come into play before long. However, we have not yet seen a sign of such a move, and as such there is a good chance today’s short-term moves will be to the downside. 

Gold chart

Brent continues to struggle with major resistance level

Brent is turning lower this morning, with the past week seeing the market fail to take the $58.48 resistance level. That long-term level needs to be broken to provide a wider, longer-term bullish outlook.

However, with the price failing to create a new high, and now heading lower, there is a chance we could begin to see this market reverse lower from here. Keep an eye out for the $56.44 level, which must be broken to point towards a period of downside for Brent.

Brent oil chart

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