Technical analysis: key levels for gold and crude
Gold has paused off the back of a sharp period of weakness, while Brent weakness continues to drive price closer to a key breakdown level.
Gold drifting lower after rebound
Gold managed to rebound sharply yesterday, coming off the back of a week of downside for the precious metal.
Given that the recent sell-off came from the 76.4% Fibonacci retracement, this current rise is expected to be a retracement before we turn back towards the $1266 lows. Whether we will see another short-term leg higher or not remains to be seen. However, a wider bearish move does look likely before long, with a rise through $1303 required to negate this bearish pattern.
Brent retraces upwards in the wake of sharp declines
Brent fell sharply yesterday, with the market building on the initial bearish signal of a break below $69.33. However, the most important move came with a drop below $68.72 yesterday.
This points towards a wider bearish picture coming into play for the medium term. For today, it looks like we could see further upside as markets take a breather ahead of the weekend. However, the pathway seems to be set, with a bearish picture likely to return before long.
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