Technical analysis: key levels for gold and crude

Gold and Brent continue to move higher, yet with the latter hitting key resistance, we await a breakout for the next leg higher.

Gold
Source: Bloomberg

Gold pullback brings buying opportunity

Gold has retraced once more, set within a rising wedge formation in place throughout the week.

With the price moving into trendline support, having hit the 61.8% retracement, there is a strong chance that we will see the price begin to rise once more from here. The rising wedge formation itself is a bearish pattern, yet we would need to see the price break below $1262 to negate this recent uptrend. 

Gold chart

Brent begins to weaken from key resistance

Brent is starting to see some selling come into play this morning, following a strong move higher throughout the week thus far.

An hourly close above $64.29 would give a clue that we could be set to follow up last week’s bullish breakout, with a move back above $65.42. Until then, there is a chance we could see the price pull back somewhat following recent gains. 

Brent chart

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