Potential Negation of Triangle Breakdown in Gold

It is too bad that gold is apparently rallying  in reaction to recent events in Iraq and the Ukraine (where separatists have downed a military plane killing all 49 soldiers aboard). Usually rallies on geopolitical news don't tend to stick. However, the August gold contract is very close to negating the recent technical breakdown from a triangle:

August gold, daily: back toward the apex of the triangle it has broken down from. If the breakdown is negated, it would be very bullish from purely technical perspective – click to enlarge.

Our guess is that a rally above the triangle's apex would be good news for gold regardless of the 'reasons' for it.

Brent Crude Resumes Climb As Well

August Brent crude, after putting in a slightly bearish looking daily candle on Friday, has resumed rallying in European trading this morning:

Brent crude ticks higher again (August contract daily) – click to enlarge.

Crude oil definitely has a political premium embedded in its price now, but it  looks technically strong as well. As a rule, it is best not to ignore strong technical signals. Note also that Brent crude oil remains in backwardation.

Charts by: barcharts