Gold and Brent prices rise, yet crude weakness likely to return
Gold and Brent on the rise, but the latter's weakness is expected to come back into play before long.
Gold breakout points towards further gains to come
Gold failed to break below the crucial $1493 support level on Friday, with its price ultimately breaking higher into a new six-year high. The trend has been overwhelmingly bullish throughout recent months, and the short-term weakness we have been seeing was always likely to be a part of a wider bullish trend.
With its price having broken through the $1535 resistance, it looks like we have left that period of weakness behind, indicating further upside to come. Therefore, while we could see further short-term downside, any such downside would be seen as a retracement of the rally from $1493, unless that prior low is broken.
Brent pauses within recent decline
Brent has been on the slide of late, with its price breaking lower after a failed attempt to break into a high through $61.32. That points towards further downside, although we would need to see the price break $57.47 to bring confirmation of a wider bearish picture coming into play.
To the upside, a break through the $59.65 level would be required to bring about a more bullish picture.
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