Gold price likely to rise again, while Brent price waits for OPEC action for direction
Gold looks primed for another surge higher, while Brent drifts lower ahead of the OPEC production decision.
Gold pennant points towards impending surge
Gold has come back into favour, as global easing from central banks brought home one of the favoured reasons for holding gold; to protect yourself from currency devaluation.
With the price currently tightening into the apex of a pennant, it is likely we will soon see a spike in volatility once again. Given the sharp rise into this pattern, it is likely that the next move will be a continuation of that bullish sentiment. With that in mind, a bullish outlook is in play, with a break below the $1632 level required to weaken that bullish sentiment.
Brent crude eases back as markets look for OPEC+ production cut
Brent crude is expected to see significant volatility today, with the Organisation of the Petroleum Exporting Countries (OPEC) hoping to agree a deal with Russia to enact a sharp cut in production to counteract the recent coronavirus-led slide in oil prices.
The recent gains have come in anticipation of this move from OPEC, and thus there will be a big focus on exactly how much Saudi Arabia can push for as they seek to raise prices. As things stand, we are at a crossroads which will be resolved by OPEC. An announcement that appeases markets could see this recent rise form a short-term base, with a rise through $53.01 pointing towards a continuation of these recent gains and a move up through $53.84. However, a failure to enact a sufficient cut could lead to a decline back below $48.93, which would provide a bearish continuation signal as we resume the downtrend of last week.
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