Gold price moves higher as oil price continues to drop back

A weakening of risk appetite has bolstered gold and knocked back oil prices.

Gold targets a break higher

The price of gold has continued its surge from the lows of last Friday, breaking through trendline resistance from the 2 June high.

The 4 June high at $1722 continues to act as resistance, but a breakout above here, as seems likely, targets $1745. Alternatively, a break back below $1710 reasserts a short-term bearish case, opening the way to $1690 and then $1670.

WTI edges lower

A bounce from yesterday’s lows faltered at $39.20 for WTI, which might provide the near-term lower high that sellers will have been looking for.

The next target in this bearish move is yesterday’s low at $37.25, and if this broken the negative case begins to gather strength.

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