Gold price and Brent crude oil price expected to diverge
Gold and Brent crude look set to diverge as bullish signal in Brent is coupled with bearish gold expectations.
Gold rallies into resistance and starts to roll over
Gold managed to rally back into the Tuesday high of $1498 yesterday, coming off the back of a failed attempt to break into the $1474 low. That could point towards some form of weakness coming into play, yet there is also a good chance that this is simply a precursor to further downside.
With the price turning lower this morning, watch out for a break below $1483 to bring about a bearish confirmation signal. Until then, there is a chance that we could continue the bullish intraday pressure seen over the past few days. A break through $1503 would be required to bring about a more bullish outlook.
Brent showing tentative signs of impending upside
Brent crude managed to rise through the $59.51 resistance level yesterday, bringing about a bullish signal following a period of consolidation around the 61.8% Fibonacci retracement.
Therefore, the gradual uptrend seen throughout October looks likely to persist before long, with a strong chance we will see a rise back towards the $60.53 peak from last Friday. A break below $58.56 would negate this bullish short-term outlook.
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