Technical analysis: key levels for gold and crude

Gold and Brent prices have taken a turn, and with key support approaching, things could be about to get even worse.

Gold heading towards crucial double-top neckline

Gold has continued its decline, with the price falling below the 76.4% retracement and heading into the key $1306 support level.

A break below there would bring a bearish wider view for this market. As such, the ability, or inability, to break below that level will be a key determinant of market bias going forward.

Brent tumbles towards key support

Brent saw another sharp leg lower yesterday, following the latest US crude inventories figure. This $64.25 level will be a key determinant of market direction as we move forward, with a break to the downside greeted with a wider bearish outlook.

Such a break would look towards the $61.67 low as the next key support level to target. Alternatively, until we see a break below $64.25, there is still a chance of a belated bounce for crude prices.

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