Technical analysis: key levels for gold and crude

Fresh short-term highs for gold confirm the uptrend, while Brent is fighting to hold its temporary rally. 

Gold bars
Source: Bloomberg

Gold climbs higher

Having posted a new higher high yesterday, the steady grind higher goes on for gold.

A close below $1285 is needed to create a new lower low, and thus raise the prospect of a potential end to the rally. Further gains above $1300 will create a new higher high, and confirm that the rally is intact.

Brent suffers potential threat

The short-term uptrend for Brent from the lows of last week could be under threat, if the price drops below $63.00.

A further decline through Monday’s low of $62.73 would suggest we do have more weakness in store, with $62.39 being the next target. A rally and a breakout above $63.60 would signal a move back to the highs of early November, at $64.56. 

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