Gold price and Brent crude oil price moves expected to reverse
Gold and Brent crude both look set for a short-term reversal, with recent moves seemingly just retracements.
Gold rebound could come under pressure once again
Gold has been on the rise over the past few days, with the precious metal pushing towards the notable $1498 level of resistance.
However, we are seeing some signs that this could start to come undone, with the wider trend of lower highs potentially coming back into play once more. Looking at this morning’s price action, we have failed to push onwards towards $1498, instead falling back to raise the likeliness of another leg lower. The $1485 level is key here, with a break below that level signalling the likely beginning of a new bearish phase. As such, watch for a break above $1498, or below $1485 as a guide of where we go from here.
Brent pulls back into Fibonacci and trendline support
Brent crude lost ground over the course of Friday, with the price declining into a confluence of trendline and Fibonacci support.
That 76.4% retracement level looks likely to be key here, as we attempt to continue rallying out of a wider downturn that respected another 76.4% level at $58.02. With that in mind, a bullish outlook is in play here, with a break below $58.53 required to bring about a more bearish view.
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