Brent crude price and gold price weaken yet wider trend remains

Gold and Brent crude weaken after Trump's comments, yet the wider trend points towards a potential limit to those losses.

​Gold declines below key support amid risk-on move

Gold appears to be reversing many of its recent gains, with the break below $1553 providing a signal that this recent uptrend is over.

The wider bullish trend does remain intact, with the current declines now looking like a retracement of the wider rally from $1445. With that in mind, while further downside looks likely over the short term, there is a good chance that traders start looking at this market in a more positive sense before long. Watch out for Fibonacci support at $1528 and $1509 as two potential bullish reversal levels.

Brent downside likely to be limited despite slide

Brent crude has also declined below a key support level, with the intraday charts highlighting the drop below $65.60 as a key move out of the recent short-term uptrend.

However, despite that intraday break, it is important to note the wider view as exemplified by the daily chart below. The uptrend seen throughout the fourth quarter of 2019 remains intact, with the current decline looking like a retracement before we turn higher once more. Watch out for Fibonacci ($64.35 and $62.76) and trendline support as potential reversal areas, with a break below $60.20 required to negate the recent uptrend. ​

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