Brent crude price and gold price weakness unlikely to last

Gold and Brent crude weakness could be short-lived, with wider bullish view likely to come into play.

Will gold rebound see uptrend return?

Gold has been regaining ground overnight, with the price rising into the 61.8% Fibonacci retracement level.

That pullback could easily be another shorting opportunity, as we continue the downtrend that has been in play over the past week. Given the relatively shallow pullback seen thus far (<50%), it is likely we will turn lower from here. However, a break through the $1653 swing high would be required to negate this bearish short-term outlook.

Brent continues to trade around trendline support

Brent crude has been consolidating around trendline support this week, with the market continuing to remain in a crucial zone of support between the 61.8% and 76.4% Fibonacci retracement levels.

The wider picture points towards a high likelihood of a move higher from here, with a break below the $60.20 level required to negate the idea that we are likely to turn higher from here.

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