Technical analysis: key levels for gold and crude

Gold and Brent begin to show signs of weakness following a period of resurgence in the week just gone.

Oil barrels
Source: Bloomberg

Gold falling towards key support

Gold is selling off sharply this morning, following on from a break below the crucial $1284 support level.  A move below $1281 would provide a strong bearish signal from here, and as such it makes sense to await the response to that level.

An hourly close below $1281 could pave the way for a week of losses.

Gold chart

Brent turning lower, with potential weakness ahead

Brent is turning lower once more this morning, in what looks like it could be the beginning of another period of weakness ahead.

With the price having broken out of both the top and bottom of its symmetrical triangle last week, we are looking for confirmation of the most recent bearish move, with an hourly close below $51.24 providing expectations of further downside from here.

Brent chart

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