Technical analysis: key levels for gold and crude

Gold’s move upwards is still intact, while Brent is trying to recover from yesterday afternoon’s weakness.

Oil pump
Source: Bloomberg

Gold pushes higher in early trading

The bullish near-term and longer-term views for gold are still extant here, as the price moves back towards $1250.

While dips are still being bought, each bounce over the past few days been smaller, so bulls need to take charge and get the price above $1250 to restore upward momentum. The bears have been unable to get the price below $1230, so that would be a key move in creating some short-term downside.

Brent still on the up despite drop

Oil prices suffered following a miserly drop in crude oil inventories, although the price of Brent managed to hold above $60 and maintain the sequence of higher lows seen over the past few days.

It still looks like a bottoming process is taking place, but the bulls now have $61.50 and then $63.50 as targets to break to the upside.

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