Technical analysis: key levels for gold and crude

Both gold and oil have struggled to hold recent highs, although there is still strong support nearby for both.

Gold faltering despite bounce

The price for gold has bounced off the lows of late March at $1320, but now it has faltered and looks at risk of testing the rising trendline from $1307.

Below $1320, $1314 and $1307 come into play. A rally will target $1345 and then move on to test $1355. The inability to hold above $1350 so far this year suggests a weakening of momentum, but $1307 continues to provide strong support.

Brent takes a bearish turn

The Brent price has faltered at $70.00, and while it is bouncing from oversold levels, a bearish bias appears to be developing in the short term.

Possible support comes in at $66.86 and then $65.70, but a break of the rising trendline from the February low would suggest a drop to $63.00. A close above $70.85 is needed to create a breakout.

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