Technical analysis: key levels for gold and crude

Both gold and Brent have been gaining ground despite recent weakness. However, with the medium/long-term views differing, this correlation may not last for long.

Gold bars
Source: Bloomberg

Gold regains ground, but for how long?

Gold managed to move back above the key $1142 resistance level yesterday, proving that we could see further gains to come. However, this is seen as a retracement of the pullback from $1165. We would need to see a break through that resistance level to provide a bullish medium-term view.

Until then, short-term gains look better as selling opportunities than for longs.

Brent pullback looks to be over

Brent crude is rallying into new highs once more, despite a period of weakness towards the end of last week. The break through $56.32 was particularly notable and provides a bullish outlook to match up with the medium/long-term view.

As such, look out for further gains, where a break back below $54.62 would provide a short-term neutral outlook.

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