Technical analysis: key levels for gold and crude

Gold is attempting to break higher amid risk-off sentiment, while Brent is taking a breather amid wider bearish story.

Gold turns lower from trendline resistance

Gold is breaking higher following a period of consolidation to start the week. Surprisingly, the risk-off mode seen in the wake of the Italian political developments has been slow to come into play for gold, yet we are seemingly seeing that emerge now.

Watch out for whether we can see the price break through trendline resistance, beyond which we have the $1308 swing high to contend with. A break above those would provide a greater confidence to the bullish view.

Brent sell-off abates for now

Brent has managed to rebound in the wake of last week’s sharp sell-off, allowing for a breather to the intensive downside. This period of downside could be the beginning of a wider retracement of the rally from $61.67.

However, for that to come into play, we would need to see a break below $72.39. Until then, there is a clear bearish bias in play over the short term, and with the price breaking lower from an intraday rising wedge, there is a strong chance we will see the pair break lower soon enough. 

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