Technical analysis: key levels for gold and crude

A weak dollar has helped drive gold higher. However, Brent crude remains stuck in a downtrend, with a new 13-month low set this morning.

Gold rallies towards key swing high

Gold received a welcome boost after Federal Reserve (Fed) Chair Jerome Powell’s dovish comments sent the dollar sharply lower.

The subsequent rally has taken us back into the region of the previous tops. A break through $1230 would certainly provide a bullish signal pointing towards a resumption of the wider uptrend. As such, watch out for how gold reacts to this resistance zone as a key determinant of where we go from here.

Brent breaking lower once again

Brent crude is falling once more this morning, with the rebound seen throughout the first half of the week provide short-lived.

This trend looks likely to persist for now, with the continued creation of lower highs critical to maintaining that bearish view. As such, keep an eye out for further downside, with shallow rallies there to be shorted into. However, a break through the recent swing high (currently $61.51) would provide a more bullish short-term outlook.

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