Technical analysis: key levels for gold and crude

Gold manages to punch through a key resistance level, with crude prices also starting to look bullish. Will this commodity surge last?

Worker inspecting oil barrels
Source: Bloomberg

Gold breaks higher once more

Gold has managed to break through the key $1207 mark this morning, paving the way for further gains. Considering the recent rally has come amid a widespread period of equity and dollar strength, the potential for a reversal in both provides a very supportive environment for gold.

The $1200 mark represents the backstop to any pullback, where an hourly close below that level would provide a more bearish outlook. However, until then, a bullish view is back in place, with further upside unlikely to run into any significant resistance for quite some time.

Brent seeking another move higher

Brent crude has managed to create higher highs and higher lows on an intraday basis, following a pullback into the 76.4% retracement. Given that we still remain above the long-term inverse head and shoulders (weekly timeframe), there is a chance we could start to see a resurgence, with $56.63 the first major hurdle to navigate. A bullish short-term is now in place, with an hourly close below $55.45 required to negate this bullish outlook.

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