Gold price steadies at support while oil price tests rising trendline
Gold has found some support after losses in the second half of last week, while oil may be poised to turn higher.
Gold back to mid-September support
The mid-September rally for gold petered out last week, after hitting $1535. The turn lower then moved back to $1485, previously support in the first half of the month.
If this holds, then another attempt to rally may develop, but a close below $1480 would negate this bullish view and signal a deeper move towards $1440 or perhaps the 100-day simple moving average (SMA) at $1425.
WTI tests rising support
Last week WTI continued to fill the gap created by the spike in prices after the attack on Saudi oil facilities.
While intraday rallies continue to be sold, the pace of decline has slowed, and crucially Friday’s dip below rising trendline support from the August low found buyers. If this signals a more bullish view, then a move back above $56.60 may provide the bullish trigger. A close below $54.70 would negate this bullish theory and signal a push towards $54.00 and $53.00.
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