Gold price turns higher as Brent crude price breaks key support
Gold starts to turn higher after recent weakness, while Brent crude breaks key support.
Gold rebounds after retracement in 61.8% Fibonacci level
Gold weakness seen over the course of the past few days always looked like a retracement of the rally from $1692 despite the secondary leg lower seen on Wednesday and Thursday. This ABC style retracement has taken us into the 61.8% Fibonacci support level, with gold heading higher as we head towards the weekend.
A break below the $1692 level would bring about significant questions over the possibility of a wider pullback. Until then, a bullish outlook is in play for gold.
Brent breaks key support after crucial week
Brent gains in the lead-up to the June contract end seem to have taken its toll, with the price breaking back below the $34.39 level this morning. That could bring further downside as we start to retrace the wider $29.24-$37.11 rally.
Quite how deep such a retracement will go remains to be seen, yet further downside does look likely now that we have broken the $34.38 level. A rally back up through $37.11 would signal a continuation of the recent bullish trend.
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