Technical analysis: key levels for gold and crude
Gold is turning lower after the recent rebound, while Brent looks likely to break down if a key support zone is breached.
Gold settles after sharp rebound
Gold failed to break below the $1277 support level last week, instead utilising it as support to rally sharply higher.
We are finally seeing that rebound coming under pressure, with early selling this week pointing towards a likely period of weakness for the short term. A rally through the $1205 level would negate the expectation of short-term downside, yet given the size of the prior rally, we could see a decent pullback here.
Brent trading around key support zone
Brent has been weakening at the start of the week, with political upheaval in Venezuela raising the possibility of a hugely significant shift in future oil exports from the country.
The price of Brent looks primed for a potential breakdown, with trendline and $60.16 support currently drawing a line under downside. A break below that level would herald the likely coming of a bearish period for the index. Watch for the ability or inability to break below that zone of support to signify whether we continue to grind higher, or break lower from here.
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