Gold and Brent prices rise, yet crude weakness likely to return

Gold and Brent on the rise, but the latter's weakness is expected to come back into play before long.

​Gold breakout points towards further gains to come

Gold failed to break below the crucial $1493 support level on Friday, with its price ultimately breaking higher into a new six-year high. The trend has been overwhelmingly bullish throughout recent months, and the short-term weakness we have been seeing was always likely to be a part of a wider bullish trend.

With its price having broken through the $1535 resistance, it looks like we have left that period of weakness behind, indicating further upside to come. Therefore, while we could see further short-term downside, any such downside would be seen as a retracement of the rally from $1493, unless that prior low is broken.

Brent pauses within recent decline

Brent has been on the slide of late, with its price breaking lower after a failed attempt to break into a high through $61.32. That points towards further downside, although we would need to see the price break $57.47 to bring confirmation of a wider bearish picture coming into play.

To the upside, a break through the $59.65 level would be required to bring about a more bullish picture. ​


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