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Technical analysis: key levels for gold and crude

Gold moves into a key support within a recent decline. Meanwhile, Brent prices look likely to move higher soon enough despite testing a crucial support level on a number of occasions. 

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Gold decline looks set to persist

Gold has been in decline since reaching the upper boundary of its range two weeks ago, with the price fleetingly hitting the lowest level in a month yesterday.

That $1320 support level is going to be key today, where a break below it would point towards a potential drop into the $1306 range bottom. Alternately, a break through the $1333 mark would provide a more bullish outlook for the short term.

Brent testing support level

Brent has been consolidating over the past week, with the price repeatedly testing a support zone around $72.40-$72.80.

A break below there would provide a short-term head and shoulders formation, heightening the chances of further decline. However, such a move would only have bearish consequences for a wider view if we saw a break below $70.47 support. Until then, any downside would likely be a precursor to another leg higher.

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