Technical analysis: key levels for gold and crude

Gold has run into a vital trendline, while Brent is moving higher after yesterday’s weakness.

Gold bulls pin their hopes on key trendline

Almost inevitably, gold has, for now, bounced off the rising trendline that has held since the end of 2015.

However, the price has been under heavy selling pressure for months, with no sign of a turnaround. The Friday high at $1255 is the first short-term target. Just below the December 2015 trendline is $1237 support, and then below this $1205 comes into view.

Brent climbs higher

Brent has rallied back above the 50-day simple moving average (SMA) at $76.26, and while it dropped back yesterday, the broader move higher is intact.

The near-term target is $80.49, while a move back below $77.00 would suggest a possible retest of the recent downtrend resistance line from the May high. Below this, $72.20 is possible support.

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