Gold price and Brent crude price diverge amid safe-haven flows
Gold and Brent divergence comes back into play, with coronavirus fears driving demand for gold and selling for crude oil.
Gold heading higher after recent retracement
Gold is heading higher once more, following a short-term retracement into the 76.4% Fibonacci support level ($1563).
This points towards a continuation of the uptrend in play over the past fortnight, with a break through the $1586 level providing a bullish continuation signal. A bullish outlook is therefore in play unless we break below the $1556 low.
Brent crude drops back into lows of the week
Brent has also turned lower overnight, with the price heading back into Monday's low of $57.82.
A break below this level would point towards further short-term downside from here. From a wider perspective, we remain within a potential retracement unless we break below the $56.08 low. Nevertheless, the short-term picture will be dictated by the ability to break and hold below this level, with further downside looking likely if that occurs.
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