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Technical analysis: key levels for gold and crude

Gold breaks below a key support level, bringing a longer-term shift in outlook. Meanwhile, Brent tests a crucial double top neckline.

All trading involves risk. Losses can exceed deposits.

Gold breaks key support, with further losses likely

Gold continues to trend lower, with the price falling below the crucial $1265 and $1260 levels. That points towards further downside, where the longer-term view is now affected to bring a wider bearish outlook, to accompany the short-term outlook.

Given the highly extended nature of this current move, it makes sense to look for retracements to short into, with $1260, and $1265 of particular interest.

Gold chart

Brent trading around critical support level

Brent has dropped into the key $61.04 level, following a significant decline this week.

Given the possibility of a double top formation, the ability to remain above, or break below, $61.04 will be a key determinant of the price action today.  

Brent oil chart

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