Gold price and Brent crude price start to fade after recent gains
Gold and Brent crude start to ease back after yesterday's sharp gains, yet such short-term weakness could be a buying opportunity.
Gold starts to lose momentum after sharp gains
Gold has continued its ascent towards the record highs of $1921, with the price managing to surge higher over the course of the week thus far.
This is just one part of a wider precious metals outperformance that comes in a week that has seen both the European Union (EU) and US push for another substantial stimulus plan. Nevertheless, we are starting to see signs of potential short-term exhaustion, with the price currently easing back. Watch for the stochastic to break below 80 as a potential signal of impending downside.
Nevertheless, even if we do see the price of gold decline in the near term, it is highly likely that such a move would simply be another retracement and precursor to another bullish turn. As such, any short-term downside is simply perceived as a retracement, with a bullish outlook in play unless the price breaks below $1796 support.
Brent pulling back after recent bullish breakout
Brent crude has started to ease back after the recent bullish surge through the $43.91 resistance level.
That break signals the end of this recent ascending triangle formation, with further gains likely to come into play despite the current move lower. Given the bullish breakout seen yesterday, this current move lower is expected to be short term in nature, with another leg higher likely to come before long. As such, watch for support on either the $43.91 breakout level, or a Fibonacci retracement.
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