Technical analysis: key levels for gold and crude

A pause in trade gives us a rare breather as we look for the next moves in gold and Brent.

Gold bars
Source: Bloomberg

Gold looks set to sell off once more

Gold broke lower from an ascending channel yesterday, following a deep retracement through the 76.4% Fibonacci level.

We have since seen the price move lower, and while we have not had confirmation via a break below $1213, a bearish outlook remains as long as we stay below the $1229 level. As such, unless we break that $1229 resistance, any rally could provide shorting opportunities.

Gold price chart

Brent gaining ground once more

Despite early losses, we are seeing Brent regain ground once more this hour.

Crucially, we need to see the price of Brent turn lower below the $49.23 or else it will start to look like a much more bullish picture. While we remain below that level there is a good chance the wider downtrend could kick in once more.

Brent price chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.