Technical analysis: key levels for gold and crude

Gold’s decline looks likely to continue, amid a wider risk-on mood. Meanwhile, Brent crude continues to rise, with the recent breakout providing consistency in its ascent 

Gold falls towards $1320 support level

Gold has continued its decline since rallying into the range top on 11 April.

We look like we are now heading towards the lower echelons of that range, with $1306 representing the extreme boundary in question. Whether we see further downside immediately or an upward retracement depends on whether we break below $1320 support. 

Brent pushes higher yet again

Brent is continuing its ascent this week, following the recent break through $70.85 resistance. This breakout is expected to continue extending higher until we see a break below the most recent swing low.

On this occasion, that swing low comes in at $72.39. As such, a bullish outlook remains unless we break below $72.39. With a rising wedge forming, there is a clear risk that we will soon see such a downward break. However, such a break would likely bring a retracement of the rally from $66.61 into play.

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