Gold, Brent crude, and lumber fall back towards key support levels

​Gold decline appears to bring fresh buying opportunity

Gold saw the bears come back into play on Friday, with the dollar gains helping to drive this precious metal lower. However, there is a good chance that this bullish trend continues to play out given the inability to break through support thus far.

Instead, we have seen price fall back into the confluence of support between the 76.4% Fibonacci and 200-day simple moving average (SMA) support levels. A move back through that zone and ultimately below $1754 would bring about a bearish outlook for gold.

Until then, this recent bullish pattern of higher highs and higher lows looks to continue for now.

Brent crude falls back into key support

Crude has been on the back foot over much of the past week, with the price of brent falling back into the crucial $92.74 support level.

For wider markets, this downward trajectory provides greater confidence that inflationary pressures will be lessened going forward. However, the longevity of this pullback is yet to be determined, with this $92.74 level likely to prove key in determining whether we see another move lower from here.

From an intraday perspective, a move back up through the $95.93 swing-high would bring a more positive outlook. As such, the onward outlook will be determined by the ability to break up through $95.93 or below this crucial support zone around $92.74.

Lumber breaks support and heads towards major support

Lumber has been hit hard of late, with price falling back below the lows established in mid-June.

Once again, from an inflation perspective, this decline provides some confidence that we will see pressure ease on sectors such as the housebuilders.

From a historical perspective, these levels are around the lowest seen in almost a year. However, that highlights the most notable thing about lumber currently, with price falling into a critical support level. The $460 support level has provided both the long-term bottoms for lumber of the past 21 months. This raises the question over whether we are set to break or rebound from this crucial historical turning point.

As such, keep an eye out for any reversal or breakdown for this market as it would bring greater confidence over where we go from here.