Gold price and Brent crude price diverge into key resistance and support

Sharp moves for the dollar see gold spike higher, while Brent crude declines back into trendline support.

​Gold spikes back into prior high

Gold failed to build on the losses seen in the early part of yesterday, with the price spiking back towards the $1474 resistance level instead.

That move points towards a deeper upside retracement playing out, with further gains now looking likely. As such, while we could see the price drift lower over the short term, another leg higher now looks likely unless we see a break below the $1456 swing low.

Brent crude drops into key trendline support

Brent crude fell sharply yesterday, with the price falling back into ascending trendline support once more.

With that drop also seeing the price fall back towards the $61.26 swing low, we are at an important crossroads for this market. Either we see Brent turn higher from here, or else we see a break below that confluence of horizontal and trendline support to bring about a potential bearish reversal signal.

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