Gold price sinks while oil price rallies

Gold is under pressure again as risk appetite recovers, while oil is looking to continue the bounce of the past week.

Gold resumes its downward move

The rebound in risk appetite saw gold move sharply lower on Friday, losing much of the ground gained earlier in the week.

The bounce from $1450 is now under threat, and with daily stochastic rolling over, plus a continued failure to move above the 50 and 100-day simple moving averages (SMAs) of $1481 and $1487 respectively, the bearish trend seems set to revive. A deeper move lower requires a move below $1445 support, which held in early November.

WTI hits two-month high

Friday saw WTI hold above $58.00 for the first time since late September, as the recovery from the late November low continues.

The price now targets $59.40 and then on to the upper end of the channel, towards $61.00. We have seen intraday higher lows and higher highs since 29 November’s drop, providing a further bullish view.

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