Gold price and Brent crude oil price likely to decline further
Gold price and Brent crude oil price both look likely to fall into further decline despite short-term upside.
Gold on the rise yet further declines look likely
Gold is on the rise this morning, yet this could be fleeting given yesterday’s declines. The drop below $1485 seen yesterday provides us with a resolution to a phase of sideways consolidation, with the wider bearish trend looking likely to kick in once more.
That breakdown points towards this current rally being a retracement, with the possibility of further short-term upside. However, there is also a strong chance that we will see this rally fall short, with the 61.8%-76.4% retracement zone ($1490-$1492) looking interesting as an area to reverse lower from. This bearish outlook would only be broken with a rally through $1495 resistance.
Brent looks set for further downside
Brent crude broke below the $58.76 support level yesterday, negating the recovery that was in play for much of last week. This points towards a likely continuation of the wider bearish trend that has been in play throughout much of September.
With that in mind, there is likely to be further downside coming into play from here. Watch out for the inside trendline resistance to come into play should we see any further upside in the short term.
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