Technical analysis: key levels for gold and crude

Gold remains within its September range, with the respect of key support pointing towards a possible rebound. Meanwhile, Brent has managed to enhance its bullish signal following the recent breakout.

Gold
Source: Bloomberg

Gold consolidates from support zone

Gold sold into an area of support, with much of the September price action taking place above $1190.

The ability to break below that zone of support and hold will tell us a lot about the potential for a wider breakdown in gold. Until then, there is still a chance we will turn higher to continue this period of consolidation.

Brent breaks higher following retest

Brent crude fell into the $80.49 breakout level yesterday, with the inability to fall below that level paving the way for further upside.

The creation of near four-year highs points towards a possible surge in the price, and with the fact that we have managed to rally away from that breakout point, there is a good chance we are looking at a period of upside for Brent. Watch out for a drop back below $80.49 to signal a potential weakening of the outlook over the short term.

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