Gold price slumps, as Brent crude price heads higher
Gold has slumped back into a crucial support level, with bearish consequences to further downside. Meanwhile, Brent looks set for further upside after recent gains.
Gold slumps into key support
Gold dropped into the $1481 support level yesterday, with the market hitting a three-week low after reversing the upside seen last week. With the price trading back around the $1481 support level, there is a chance that this recent low is going to be respected for a third time in the space of two weeks.
With that in mind, the key here is whether the price drops back below the lows of $1479 seen yesterday. Should that occur, it could lead us into a break below the more important $1474 low from mid-October. However, the first question markets need to know is whether we hold above $1481 to reverse higher, or finally break lower to bring a wider bearish picture into play.
Brent likely to continue recent rebound
Brent managed to push into a one-month high yesterday, with the price moving past the $62.10 resistance level in a continuation of the recovery from $56.08. There is a strong likeliness of further upside from here, with a break below $61.77 required to bring about a retracement phase for the near term.
As such, further upside looks likely for today, with long positions held unless the price falls below the $61.77 swing low.
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