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Technical analysis: key levels for gold and crude

Gold falls lower from a wedge, yet it may not be quite over. Meanwhile, crude prices manage to remain solid despite yesterday’s inventories build.

Oil refinery plant
Source: Bloomberg

Is gold about to push higher?

Gold has sold-off sharply this week, bringing it within close proximity to the critical $1200 support level. Below there, the uptrend in place since the turn of the year would be negated. However, we have not seen price break below that level and with the indices showing signs of weakness, there is a chance we could see some sort of bounce from here.

That said, we have just broken lower from a wedge pattern, which could be the precursor to further losses. The key here is either an hourly close below $1219 (for a bearish outlook) or above $1233 (for a bullish outlook). 

Gold price chart

Brent retracement turns higher once more

Brent crude pulled back yesterday following a rise in crude inventories. However, we have seen price show remarkable resilience, with overnight consolidation looking to give way to another leg higher.

As such, further gains look likely over the short-term, with a break above $48.06 highlighting a trend continuation, upon which we would need to break $46.80 to negate the uptrend.

Brent crude price chart

WTI consolidation looks to turn higher

WTI also managed to retain its composure despite a bearish inventories rise, with price now pushing higher once more.

We need a break above $46.90 to continue the uptrend, upon which we would utilise the overnight lows of $45.60 as the key swing low which must remain intact to retain the current short-term uptrend. 

WTI crude price chart

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