Gold price and Brent crude price diverge, yet bullish outlook dominates
Gold and Brent crude diverge, with gold heading higher after FOMC meeting. However, both markets look set to push higher before long.
Gold heading higher after decline into key support
Gold dropped into the $1481 support level yesterday, following the Federal Reserve (Fed) rate decision. The consolidation seen over much of October has taken us within close proximity to the $1519 resistance zone, yet failed to break through to bring a wider bullish outlook.
On a morning that has already served up a host of US-China related headlines, gold bulls will be hoping to see further signs of weakness in that relationship to push us through $1519. Should that occur, it would likely lead to the exit and breakout from this phase of consolidation. As such, while short-term upside looks likely, the big question is whether we can see a rise through $1519 to bring wider bullish consequences.
Brent crude looking to extend recent retracement
Brent crude has been showing signs of forming a short-term bearish phase, with the price declining below the $60.43 swing low.
A continuation of that breakdown looks likely as we retrace the rally from $58.00. As such, watch for further downside from here, where a break above $61.65 would be required to bring about a more bullish outlook once more. Otherwise, further downside could bring about a bullish opportunity around the 61.8%-76.4% Fibonacci zone ($59.55-$58.94).
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