Gold reversing higher amid recent decline, while Brent continues to drop
Gold and Brent crude declines come against wider outlook, with bullish trend likely to come back into play before long.
Gold rise moves it closer to key resistance
Gold has been regaining ground over the course of the week, with the price rising back towards the key $1563 level. Thus far we have seen a relatively shallow retracement, which highlights the potential for another leg lower.
However, should we break through that $1563 level, it would provide a bullish signal that points towards a return to the uptrend in play over recent months. With that in mind, while the bullish trend is expected to come back into play soon enough, we need to see a break through the prior swing high to signal the return of that bullish theme. Until then, another leg lower remains a distinct possibility for the short term.
Brent declines take it into key support zone
Brent crude has been on the slide over the course of the past week, taking the market into a one-month low yesterday.
However, the wider picture does point towards a potential resurgence before long, with a break below $60.20 required to negate that view. With Brent currently trading between the 61.8% and 76.4% Fibonacci levels, there is a chance we will see the bulls come back into play before long.
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