Technical analysis: key levels for gold and crude

Gold is moving into a crucial support zone, while the recent downturn seen in Brent could be on borrowed time.

Gold downturn brings market into key support zone

Gold has continued its decline, with the price approaching a crucial area of support around $1317-$1320. That zone marks both a notable swing low and the 76.4% retracement of the wider move.

That looks like an interesting zone for long positions, with a break below $1307 required to negate the bullish outlook that was determined by the uptrend in place over the past two months.

Gold price chart

Brent wedge breakdown slowing

Brent has been turning lower this week, since breaking out of a rising wedge on Monday. There is a strong chance that any subsequent downside would simply be a retracement before we move higher once again.

However, we could still see further downside over the short term, with a break above $65.32 required to negate this short-term bearish trend.

Brent price chart

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