Technical analysis: key levels for gold and crude

Gold weakness could be short-lived, while Brent is showing potential signs of rolling over.

Gold
Source: Bloomberg

Gold pullback could provide bullish opportunity

Gold has pulled back into the 61.8% retracement this morning, following yet another move higher yesterday. The market is showing tentative signs of bottoming out, so there is still a good chance we could see this current upside broken to the downside.

However, for now we have clear higher highs and higher lows, which are likely to continue. With that in mind, a bullish outlook remains unless we see the price fall below $1272.

Gold chart

Brent threatens to extend losses

Brent sold-off sharply into the $59.91 support level yesterday, threatening to break out of the recent uptrend. We have seen a short-lived recovery, with the price moving towards yesterday’s low once more.

With that in mind, it is worth watching for a break below $59.91, where an hourly close below that level would signal a likely period of weakness for Brent. On the flip-side, an hourly close above $60.66 would provide a bullish continuation signal. 

Brent chart

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