Gold price and Brent price decline as sentiment improves
Gold and Brent decline further, with risk-on sentiment coming despite expectations of weaker Chinese demand.
Gold consolidating, yet further declines look likely
Gold has been on the slide as traders move out of haven assets and into risk. The consolidation we are currently seeing provides us with a breather off the back of the sharp declines seen on Monday and Tuesday.
However, the break below $1563 provides us with a bearish signal that we will see further downside to come. As such, this looks like a consolidation phase, with a break back below $1546 providing another bearish signal. Alternatively, short-term upside would be deemed as a retracement before we turn lower again. A break through $1590 would be needed to negate this bearish short-term outlook.
Brent crude rallies into trendline resistance
Brent crude has managed to regain ground following a period of weakness taking us into a 13-month low on Tuesday.
This downtrend remains in play unless we see a break through $59.87, with another leg lower from this trendline looking likely from here. Watch out for a trendline break to signal further short-term upside, yet we have seen precious few signs that this is the end of the recent selloff. Keep an eye out for Organization of the Petroleum Exporting Countries (OPEC) announcements as they attempt to arrest the declines.
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