Technical analysis: key levels for gold and crude

Both gold and Brent have been heading higher, yet with the crude breakout, there is a clear case that oil prices are going to rise faster than gold, which continues to consolidate.

Gold continues to grind higher

Gold has been gradually gaining ground over recent trading days, with the price moving back into a resistance zone of $1357-$1366. There is a strong chance we will see a retracement come into play soon enough, with trendline support worth watching as a potential buying opportunity.

Given the wider trend of higher highs and higher lows, there is a potential that we are seeing the end of this multi-month period of consolidation. A break through $1366 would be required to signal such a breakout. In the meantime, further gains are likely to come into play, with a drop below $1337 required to negate this bullish outlook.

Brent punches into new three-year high

Brent has managed to break out of its recent consolidation, with tomorrow’s Organisation of the Petroleum Exporting Countries (OPEC) meeting providing the potential for another boost.

With the price having broken through a crucial consolidation phase, we have entered a region of very little resistance, where this breakout is expected to continue extending higher. A break below $70.47 would be required to negate this bullish view, with any retracements likely to bring good buying opportunities. 

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