Technical analysis: key levels for gold and crude

Gold continues its ascent, courtesy of Donald Trump. Meanwhile, Brent has dropped below a notable level, with the bearish picture coming back into play.

Oil drill tubes
Source: Bloomberg

Gold beading towards critical resistance level

Gold has enjoyed an incredible rally this week, thanks in no small part to Donald Trump’s antics. We have seen the price break through trendline resistance, with overnight consolidation likely to resume the uptrend.

A break through $1289 points towards a continuation of this recent trend. However, the big hurdle comes at $1296, which, if broken, would lead to a bullish outlook for the long term. In the meanwhile, a break back below $1284 would point towards a period of downside to take a breather.

Brent bullish breakout fails to hold

Brent has proven a tricky customer over the past 24 hours, with a bullish break through the top of its symmetrical triangle being followed by a move back below the key $51.38 mark.

As such, we are now looking at a more bearish short-term picture, which coincides with the longer-term outlook. An hourly close below $50.89 would provide greater confidence of this bearish picture. With the US rig count data coming out later today, there is still room for further volatility.

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