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Technical analysis: key levels for gold and crude

Gold breaks higher thanks to comments from Trump, while Brent continues to consolidate around the 76.4% retracement.

IG Analyst

Publication date : 2017-08-09T09:51:57+0100

Gold figure

Source: Bloomberg

Trump sends Gold spiking higher

Gold managed to break through trendline resistance overnight, following confrontational comments from Trump in relation to North Korea. Crucially, we have also seen a break through $1265, thus negating the recent creation of lower highs and lower lows.

A push above $1271 would provide a strong confirmation of the bullish shift, with that level resting above the 76.4% retracement of the entire move lower from $1274. Keep an eye out for that $1268 Fibonacci resistance level. Today seems like a day of discovery, where a break above $1271 would point towards a bullish resurgence, while a move lower from here could see the selling pick up once more.

Gold chart

Gold chart

Gold chart

Brent sideways price action continues

Brent remains within a symmetrical triangle formation, coming off the back of a wider rally into the 76.4% retracement at $52.43.

A breakout from this pattern will provide the lead on where we go next, with an hourly close above $53.00 providing a bullish view, while an hourly close below $50.89 gives confidence of a downturn for Brent. Until then, consolidation reigns.

Brent chart

Brent chart

Brent chart

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