Gold price and oil price under pressure

Gold’s uptrend is still intact, although upward momentum has been lacking. Meanwhile, oil is fighting to hold the higher low it established yesterday.

Gold sending mixed signals

The short-term descending channel remains in place for gold, which has struggled to make much headway over the past week.

Losses below $1795 have been contained, which provides a ‘line in the sand’ for both buyers and sellers. Below this, the 200-hour simple moving average (SMA) at $1791 comes into view, while a rally towards $1810 would encounter trendline resistance from last Wednesday’s high. A break above $1810 provides a more bullish view.

Brent fights to recover from Monday’s drop

Brent crude has stumbled around $43.50 for over a week, but yesterday’s weakness was not able to go back to last Friday’s lows, instead establishing a higher low, a potentially bullish sign.

Further gains would see the price challenge $43.50 once again, while below $42.00 the price will test Friday’s low once again, and below this a more bearish view emerges.

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