Technical analysis: key levels for gold and crude

Gold breaks lower, threatening to fall into a negative spiral once more. Meanwhile, Brent prices drift lower amid a clear uptrend.

Gold
Sourcce: Bloomberg

Gold breaking lower after recent gains

Gold has negated its recent recovery, with the price falling back below the $1273 mark to complete a lower high and lower low. With the price subsequently falling back below $1272, it looks like we could be heading back to trendline support once more. The key to whether this is a wider pullback before we move higher, or a beginning of a wider move lower is whether we break below $1265.

For now, the price seems to have respected the 76.4% retracement. However, should we see a break back below $1265, then the price of gold would look susceptible to significant further downside.

Brent testing support level amid recent weakness

Brent has seen a slight pullback over recent days, with the price probing below the $62.89 support level. An hourly close below there would point towards a possible retracement of the move from the $60 mark.

However, unless we break below $60, then any such downside would simply be seen as a buying opportunity, given the wide uptrend in play for Brent.

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