Technical analysis: key levels for gold and crude

Gold has rallied towards a crucial resistance level, while Brent continues to range ahead of the new year.

Smelted gold
Source: Bloomberg

Gold approaches key resistance

Gold has continued its short-term gains, rallying towards the crucial $1165 resistance level. Should we see that level broken, it would point towards a wider, longer-term bullish outlook for gold. Until then, we need to see a turn lower to continue its recent downtrend.

Brent ranging ahead of likely bullish break

Brent crude is once more attempting to break through the $57.26 resistance region, as it seeks to continue the ascent seen earlier in the week. However, it looks as though we could see another turn lower for the time being.

As such, watch out for a breakout from the current $56.59-57.26 range to spark the next big move. Until then, the range looks like something worth considering, with either short-term shorts or even better, a long from the $56.70 region.

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