Gold price edges lower while oil price surges

A drop in US crude stockpiles has boosted oil prices, while gold is undergoing a modest retracement following its recent spike.

Gold drops back after recent peak

Given the sharp rally in gold, the weakness of the past two days has resulted in the first real pullback here.

The bounce, however, is firmly intact, and we look for a fresh push higher. The break lower does reinforce the bearish wedge highlighted earlier in the week, and a failure to push back above $1425 would be a more bearish development.

WTI spikes after inventory data

When a drop in crude inventories prompted gains for WTI, $58.25 held as resistance until late yesterday.

This leaves the uptrend from the mid-June lows intact, and targets $59.40 and then trendline resistance from the April highs around $60.00. A move back below $57.00 would be regarded as a bearish development.


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