Gold consolidating, while Brent continues to retrace

Gold is consolidating above key support level, while Brent continues to gain ground in a likely retracement phase.

Gold continues to consolidate above key support level

Gold has been largely consolidating over the course of this week, with the price managing to remain above the $1382 support level.

The ability to stay above that level is key here, for a break below there would complete a double top formation. Until then, there is a good chance we could see a rebound before long, with a move above $1407 bringing about a bullish signal.

Gold chart Source: ProRealTime

Gold chart Source: ProRealTime

Brent crude continues short-term rebound

Brent is posting another leg higher, within a rebound which has lasted for a week. To the upside, watch out for trendline resistance as a potential roadblock to further gains.

However, from a wider perspective, this recent rally looks like a retracement of the $66.70-$62.04 decline. Thus, this deep pullback within the 61.8% and 76.4% Fibonacci levels is likely to bring another turn lower before long. Nonetheless, a rally through $66.70 would serve to negate the current bearish outlook.

Brent chart Source: ProRealTime

Brent chart Source: ProRealTime


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