Technical analysis: key levels for gold and crude

Gold is clinging on to $1225, while Brent crude looks set for more gains after it bounced off a key trendline last week.

Gold bars
Source: Bloomberg

Gold keeps holding on

Yesterday’s bounce fizzled out, with gold unable to push above the $1235 level that has become resistance over the past three sessions.

The $1225 level continues to hold, so if this base remains in place there is still a possibility of a rally, although it needs to clear $1235 and then get back to $1250 to suggest a move higher is underway. A drop below $1225 would likely lead to a swift unravelling of bullish positions, and a push down to $1195, the March lows.

Brent getting ready for further gains

The rising trendline off the July lows came to the rescue of Brent on Friday, with the price bouncing and being given further support thanks to some OPEC jawboning.

With buyers now moving back in, we look for a push above $50, which would see a break of the most recent lower high on the hourly chart. Beyond this we look to $52 and then $52.50.

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