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Technical analysis: key levels for gold and crude

The gold rebound is slowing, with an early pullback bringing questions over its longevity. Meanwhile, Brent prices tumble into a key support level.

Oil
Source: Bloomberg

Gold consolidating after recent gains

Gold is drifting lower after failing to break through the $1240 peak set on Tuesday. This points towards a potential breakdown, if we move below $1225.

However, until that happens, we are likely to be forming another part of a slower bullish story, with further upside expected before long.

Gold chart

Brent declines into key support

Brent has dropped further following the news that Saudi Arabia is set to pump more oil going forward.

The bullish story is unravelling, and a break below $75.56 would provide greater confidence that this recent downtrend will have further to run. As such, watch for a four-hour close below $75.56 to provide a bearish continuation signal.

Brent 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.