Gold prices stuck below resistance but oil prices drop sharply
Gold’s rally stalls while oil drops sharply thanks to tariff war fears.
Gold stuck below $1440
Gold continues to find itself unable to hold above $1440, while dips towards rising support find buyers.
One positive view would be that the daily moving average convergence divergence (MACD) is slowly beginning to flatten out, which may lead to a bullish crossover signal in due course. However, a firm close above $1445 would be needed to confirm this. Dips towards $1415 may continue to find support.
WTI slumps on tariff war fears
The move higher for WTI suffered a check on Wednesday, and then was dealt a severe blow yesterday when US President Donald Trump revived the threat of trade wars.
As a result, the price dropped back below trendline resistance, and below the $55.50 area that marked support in the second half of July. While there has been a slight recovery overnight, further declines may occur, targeting $52.90 and $52.00 as possible support. A move above $56.00 might begin to suggest a stabilisation and the development some of bullish momentum.
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