Technical analysis: key levels for gold and crude
Gold is continuing its consolidation phase, with the price approaching a key breakdown level. Meanwhile, Brent is on a more positive footing following a period of downside.
Gold continues to consolidate
Gold remains within a consolidation phase, following a strong December surge.
With growing optimism around US-China trade talks, we are seeing some of that risk-off sentiment ease, yet we would need to see a break below $1277 to signify the start of a bearish period. Until then, there is a good chance that this is simply a retracement before we push higher once more.
Brent continues to regain lost ground
Brent is in a much healthier position compared with a week ago, with the price rising from the low of $50.00 to approach the $60.00 mark.
The key to proving this rally has longevity to it comes with a rally through the $63.75 level. However, for now watch for whether we break or respect the 76.4% retracement ($60.54) as gauge of whether this is a retracement or a reversal.
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