Technical analysis: key levels for gold and crude

Gold is under heavy pressure, while Brent is eyeing up the recent highs. 

Gold
Source: Bloomberg

Gold’s rally takes a dive again

Having clocked up a higher high earlier in the week, gold has undergone another sharp reversal, which for the time being is creating a new higher low.

Such deep retracements over the past month have provided good buying opportunities, and as long as the price holds above $1275, this may remain the case. Otherwise, a decline below $1275 would target $1264. 

Brent turns higher after weakness

A modest recovery is underway for Brent, with the previous key $63.03 level likely to be tested. The past week has seen gains peter out around $63.70. Beyond this lies $64.56.

There is the potential for volatility around the Organisation of the Petroleum Exporting Countries (OPEC), but a move below $61.05 is needed to put a more bearish view on the outlook. 

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