Technical analysis: key levels for gold and crude

Gold prices have retraced, but given the recent trend, this may be an opportunity rather than a reversal. Meanwhile, Brent prices are rising, yet the downtrend remains intact.

Mining gold
Source: Bloomberg

Will gold turn higher once more?

Gold has pulled back overnight, set within a clear two-week uptrend. According to that short trend, we expect to see the price rise once more this morning. While that appears to be happening from the 50% retracement, it is worth noting that there is a huge hurdle above at $1264.

As such, while we could clearly break higher from here, the bullish view holds much more value upon breaking through $1264. A break and hourly close below $1241 would provide a more bearish picture.

Brent back at notable resistance level

Brent has rallied back to the $51.14 level this morning. This level represents the source of significant resistance over the past week. As such, this looks like an interesting area to possibly turn lower once more, with the $50.25 area to look for.

Ultimately, we would need a break through trendline and $52.31 resistance to negate the recent downtrend. Until then, it seems likely that these recent gains will be fleeting. 

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