Gold price and Brent crude oil price break key support
Gold and Brent on the slide, with both breaking key support levels to signal further downside.
Gold rallies back into H&S neckline resistance
Gold managed to break below the crucial $1480-$1484 resistance zone on Monday, completing a bearish head and shoulders formation. That points towards further downside, yet we have seen stock market losses reflected in a gold rebound back into $1484 resistance.
While the price is drifting lower, the shallow slant of this move alludes to the potential for another short-term leg higher. Should that come to pass, this rally looks to be a retracement of the sell-off from $1535. Thus for the time being any upside is deemed a precursor to further weakness in gold.
Brent falls into notable support level
Brent has failed to hold on to any of the gains associated with the Saudi attacks, with the price having closed the gap following that major event.
Crucially we have also seen the price fall below $58.56 which signals a high likeliness of further downside. As such, watch the intraday downtrend, with further declines likely unless we see a break through $60.05.
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