Gold price and Brent crude oil price drift lower overnight
Gold and Brent crude ease back, yet there is still a strong possibility of further upside to come.
Gold starts to ease back amid recent gains
Gold is going to be a key market to watch today, as market sentiment around US-China trade war plays out on both ends of the risk spectrum. Gold has been gaining ground of late, with stock-market losses pushing traders towards the likes of gold.
However, overnight upside for stocks have dented demand for this precious metal, with the price falling below trendline support. We need to see a break through $1519 to bring about a clear bullish continuation pattern. Given the failure to overcome that high yesterday, a decline below $1500 would point towards a possible bearish phase coming into play. Until then, the recent recovery still remains intact despite a move below trendline support.
Brent consolidation continues around key support
Brent has been oscillating above a key support level of late, with the sharp losses of last week bringing us back into the $55.80-$56.06 support zone. We have largely consolidated since that decline, with the intraday price action failing to really gain traction yet.
The lower lows evident towards the beginning of the week have been negated with the break through $58.76. Thus, watch out for whether we see a break below $57.24 or not as we seek to see some form of consistency build for this market. However, we would ultimately need to see a break through either $59.51 or $56.08 to bring about greater clarity.
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