Technical analysis: key levels for gold and crude

Gold continues to gain ground, yet how long will it last? Meanwhile, Brent is looking for a big breakout as it approaches key resistance.

Work man inspecting oil barrels
Source: Bloomberg

Gold rallies back into near-term resistance

Gold is weakening from the $1150 resistance mark, following a strong showing overnight. This rally is seen as a retracement of the deterioration from $1165, where a break above that level would be needed to make the near-term bullish sentiment carry through into the medium-term. Until then, this rally looks like it may just be a short-term phenomenon.

Brent back at key resistance

Brent crude has pushed back into a key resistance zone between $57.53 and $57.83, signaling a potential end to over two-weeks of consolidation. A break through $57.83 would provide a strong bullish signal, corroborating the wider long-term bullish picture given the creation of a multiyear inverse head and shoulders. A break back below $54.66 would negate this bullish short-term outlook.

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