Gold price and Brent crude oil price tentatively gaining ground

Gold and Brent crude continue to regain ground. However, how long will this bullish price action last?

Gold rallies into Fibonacci resistance

Gold has been on the rise since Friday’s low, with the price regaining much of the ground lost last week. However, the wider picture remains bearish, with the creation of lower highs over the past two months coinciding with the intraday short-term trend.

With that in mind, it makes sense to look out for another bearish turn from here, with price having rallied into the 76.4% Fibonacci resistance level. A break through $1503 would be required to negate this bearish short-term outlook.

Brent expected to strengthen once more after yesterday’s decline

Brent crude pulled back into trendline and Fibonacci support yesterday, with the recovery continuing to play out gradually.

The creation of higher highs and lows points towards a likely bullish reversal from here. As such, with the stochastic tightening for a likely bullish crossover, there is a good chance we will see the bulls come back into play today. A break below $57.24 would be required to bring about a resumption to the wider bearish trend.

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