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Technical analysis: key levels for gold and crude

Gold remains within its September range, with the respect of key support pointing towards a possible rebound. Meanwhile, Brent has managed to enhance its bullish signal following the recent breakout.

Gold
Source: Bloomberg

Gold consolidates from support zone

Gold sold into an area of support, with much of the September price action taking place above $1190.

The ability to break below that zone of support and hold will tell us a lot about the potential for a wider breakdown in gold. Until then, there is still a chance we will turn higher to continue this period of consolidation.

Brent breaks higher following retest

Brent crude fell into the $80.49 breakout level yesterday, with the inability to fall below that level paving the way for further upside.

The creation of near four-year highs points towards a possible surge in the price, and with the fact that we have managed to rally away from that breakout point, there is a good chance we are looking at a period of upside for Brent. Watch out for a drop back below $80.49 to signal a potential weakening of the outlook over the short term.

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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.