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Technical analysis: key levels for gold and crude

Gold showing signs of a resurgence, with a short-term period of upside providing a potential buying opportunity. Meanwhile, Brent prices head back into a crucial resistance zone.

Source: Bloomberg

Gold showing signs of a resurgence

Gold is breaking higher this morning, following on from the sell-off seen earlier in the week. The difficulty here is that we are at the whim of Mr Kim Jong-Un and should we see another North Korean nuclear test, it would spark a rise in gold. All things remaining equal, this market looks like it could be retracing a part of the $1358-$1322 sell-off before we move lower once more.

However, given the bullish bias caused by the possibility of another test, the bullish short-term picture looks like a good bet on an intraday basis. It seems like we could be retracing towards the $1345-$1350 mark, and given the potential for a positive surprise on top of that, it makes sense to take longs. As such, a short-term upside into $1345 seem attractive, where a break below $1328 would negate that bullish short-term view.

Brent heading back into key resistance zone

Brent managed to break higher from the short-term period of weakness this week, with the creation of higher highs and higher lows on an intraday basis bringing us back into a crucial resistance zone. The ability to break through $55.00 would provide a bullish medium/long-term view for Brent.

Until then, there is still a chance we could see this market turn lower from this key resistance zone once more. 

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