Technical analysis: key levels for gold and crude

Gold has continued its gains, pushing through key resistance levels. Meanwhile, Brent is remaining somewhat rangebound despite the recent OPEC production cut.

Gold uptrend continues after recent breakthrough

Gold managed to break through the $1237-$1243 resistance zone last week, bringing about a new higher high on the daily timeframe. This also continues the uptrend seen since the market bottomed out in August. With the price currently drifting lower, there is a chance we could start moving into another wider retracement phase.

However, until we break below $1235, there is also a chance that this is simply a short-term pullback before we start to regain ground once more.

Brent rallying once more after volatile period

Brent managed to rebound back into the $63.60 region on Friday, with the Organisation of Petroleum Exporting Countries (OPEC) production cut helping recover the losses seen through Wednesday and Thursday. This adds to the potential bottoming out phase that has been building over the past three weeks.

However, with trendline resistance up ahead, we will need to break out of this range and through that trendline to provide a provide greater confidence of a longer lasting period of upside to come.

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