Gold and Brent diverge amid Chinese worries

Gold looks likely to push higher, while Brent crude declines take us towards a crucial breakdown level.

Gold expected to push higher despite morning losses

Gold has been drifting lower this morning, coming off the back of a rally into the crucial $1568 resistance level.

With the intraday creation of higher lows still in play, we are likely to break this resistance level before long. A decline below $1546 would negate this bullish short-term outlook.

Brent crude declines towards $60.20 support

Brent crude has been on the slide this week, with fears over Chinese demand hurting prices. That takes us back towards the crucial $60.20 support level.

Should that level break, it would signal a wider bearish phase coming into play. Given the decline through all Fibonacci levels, it does look likely we will continue to decline, with a break through $65.20 required to negate this short-term bearish trend.

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