Technical analysis: key levels for gold and crude

Gold and Brent have both been gaining ground of late, and with recent consolidation, there is a chance of further upside to come. 

Source: Bloomberg

Gold consolidating after recent rebound

Gold has been driving higher over the past week, with the price hitting a one-month high on Friday.

Due to current consolidation, there is a chance we will see another move higher before long. That being said, while there is a chance of further upside, we are moving into a resistance zone which could slow the ascent. With that in mind, watch out for a potential respect of the descending line above which has been transposed from the lows in February and March.

Brent retracement likely to bring further upside

Brent has been gaining ground over the past month, with the price rising above $70.00 earlier today.

The ability to break above $70.85 will be key to determining whether we will see another leg higher on the wider timeframe. With the price moving lower today, there is a chance we are retracing prior to another leg higher, where $70.85 represents the key resistance level to watch. We would need to see break below $68.22 to provide a more bearish outlook for Brent.

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