​Brent crude and gold weakness could provide buying opportunity​

Gold and Brent crude slump, yet wider bullish trend points towards likely resurgence before long.

​Gold heads lower once again

Gold has been on the slide since Donald Trump calmed fears over a potential war with Iran. Instead we are seeing markets move their focus to more optimistic topics such as the US-China trade deal signing on Wednesday.

Given the size of the recent rally, it makes sense to expect further downside from here. As such, a bearish outlook is in play, with a break below $1540 providing greater confidence of such a bearish move coming into play. However, the wider outlook remains bullish and thus any short-term downside looks like a retracement and precursor to further gains unless we break below $1445.

Brent slump slows at Fibonacci support

Brent crude saw sharp losses off the back of a sharp spike in response to the US-Iran tensions.

Despite this decline, the wider trend remains bullish until we see a break below $6020. Given the recent respect of the $64.35 support level (61.8% Fibonacci), it makes sense to watch out for a potential move higher from here. Should we break this level, watch out for support at an ascending trendline and the 76.4% Fibonacci retracement at $62.76.​


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