Technical analysis: key levels for gold and crude

Gold is pulling back from a crucial resistance level, while Brent prices push into multi-year highs with conflict in Syria expected to help drive further gains.

Gold falling after spike into range top

Gold has been falling back following yesterday’s sharp spike towards the $1367 mark. That level represents the top of the range, which has been in play over the past three months.

As such, should the range persist, we will need the price of gold to continue falling from here. With that in mind, watch for potential further downside, where a break through $1367 would be required to signal a bullish breakout from this multi-month range.

Brent hits new three-year high

Brent has continued to surge higher following President Donald Trump’s tweet over the potential for US involvement in Syria. The break through the $70.00-$70.85 resistance zone highlights the possibility of a bullish breakout period.

As such, it is likely we will see crude prices continue to rise, where a break below $70.00 would provide a warning sign. Until then, further gains are expected, with the likely involvement of the US in Syria only serving to bolster calls for higher crude prices.

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