Brent crude price set for further upside, as gold price consolidate
Gold at risk of a potential reversal, while Brent crude looks set to continue its recent decline.
Gold consolidation points to potential decline
Gold has been in consolidation mode since topping out marginally below the 76.4% resistance level on Tuesday.
The wider bearish trend remains relevant around these levels, with gold having moved back towards the descending trendline resistance. With that in mind, watch for a break below $1474 to signal an impending period of weakness for gold. Alternatively, we need to see a break through $1481 resistance to signal a possible rally into the crucial $1487 swing high.
Brent crude continues to push high
Brent has been grinding higher over the course of December thus far, with the recent price action providing little by way of retracements. That short-term trend remains intact and thus we are looking for further upside today.
With the price dropping a little this morning, it makes sense to look at this as a retracement, with a bullish outlook in play unless we see a drop below the $64.98 support level.
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