Technical analysis: key levels for gold and crude
Gold appears to be taking a breather after a protracted move higher, while Brent crude is reversing from a crucial resistance level.
Gold in retracement mode after recent gains
Gold has been drifting lower over recent days, with the commodity giving back some of the ground gained over the past week.
The uptrend still remains intact, yet a deeper retracement looks likely, with a break below $1308 providing greater confidence that we are set for further downside. A break below $1277 would be required to negate the wider bullish picture.
Brent turning lower from key resistance level
Brent rallied into the $63.75 resistance level yesterday, only to reverse lower. A break through that level would confirm a wider inverse head and shoulders formation, paving the way for further upside.
However, with the price breaking lower, the key is quite how much we pull back, with a drop below trendline support and $60.46 signifying a strong possibility that we will see a more bearish phase come into play. We would need to see a break through the $63.75 level to bring about a more confident bullish outlook from here.
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