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Technical analysis: key levels for gold and crude

Gold and crude continue to move lower, despite short term upside overnight. 

Gold bar
Source: Bloomberg

Gold sell-off looks set to continue

Gold is moving lower once more this morning, in an extension of the weakness we have seen in play since the pair hit long-term trendline resistance.

Despite the short-term bounce yesterday, we are seeing gold move lower once more, with the $1267 level marking the nearest notable support level. Below that, we have the key $1264 level to watch out for. With that in mind, while further downside looks likely, it is certainly worth noting that the $1264-$1267 support zone represents a significant hurdle to overcome.

Brent turns lower once more

Brent has turned lower following a short-term bounce overnight, with the recent downtrend clearly intact.

Yesterday’s low of $51.89 should provide us with the level which, if breached, would signal that the downtrend remains valid. This is expected, with a break through $53.00 required to negate this bearish view.

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