Technical analysis: key levels for gold and crude

Gold tumbles after election bounce, while crude prices fade into Fibonacci support following notable rallies.

Worker inspecting oil barrels
Source: Bloomberg

Gold continues to tumble, post-election

Gold’s resurgence was fleeting at best this week, with initial gains wiped out, and then some. We are seeing price continue to fall this morning, as it pushes back towards yesterday’s low of $1251. This is expected to continue to end the week, with an hourly close above $1265 required to negate this bearish view. 

Gold price chart

Will Brent start to turn higher?

Brent is selling-off sharply since a post-election rally, with the price having experienced substantial volatility this week. Crucially, we saw this period of choppiness occur around the key $45.20 support region, which must be broken for the bearish outlook to come back into play.

Until then, there is a chance we could see Brent turn higher, with the 61.8% and 76.4% retracements worth watching as near-term resistance. 

Brent crude price chart

WTI rebound fading

Similarly, WTI has bounced from a crucial area of support; on this occasion $43.22-$43.50. We are seeing that rebound fade, yet given the fact this rally comes from a crucial support zone, it makes sense to either await a convincing break below $43.22 or else look for another leg higher.

Once more, the 61.8% and 76.4% Fibonacci support levels represent key support levels for that potential move higher. 

WTI crude price chart

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