Technical analysis: key levels for gold and crude

Both gold and Brent look likely to gain ground, amid a resurgence in commodities. However, with a rising wedge in gold and a resistance zone for brent, challenges remain.

Source: Bloomberg

Gold gains, but wedge could point to pullback

Gold has been gaining ground overnight, as the market extends the gains seen throughout the week. On a wider context, there is a good chance we have bottomed out, and as such further upside seems likely.

However, with a bearish rising wedge forming, a break below $1290 would point towards a possible short-term retracement. However, until that happens, the bullish outlook remains in place.

Gold chart

Brent rallies into key resistance zone

Brent has rallied through the $56.99 resistance level this morning, in what looks like a signal of impending upside. The weakness we have seen over the past three weeks could be over, with the creation of a higher high coming after the higher low yesterday.

Watch out for the $57.19 level as the next resistance point of note, where an hourly close above there points towards a possible rally up to the previous high of $58.93.

Brent chart

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