Gold price edges back while oil price stabilises
Gold’s rally remains intact despite the overnight pullback, while oil prices are fighting to hold Monday’s low.
Gold edges back from yesterday’s peak
Having spiked to a seven-year high, the price of gold then retreated sharply, falling to $1633 and the 100-hour simple moving average (SMA) before beginning a recovery.
This pullback creates a higher low and thus leaves the uptrend intact, and the steep pullback overnight helps to remove some of the exuberance from the price action. If the morning low holds then a continued rally seems likely, as the price moves back towards $1690.
WTI fights to hold Monday’s overnight low
WTI prices have been hard hit over the past four sessions, but already a more bullish view is beginning to emerge. Having held above $50.50, the price then moved higher, but is running out of bullish momentum at $52.00.
If it can hold above $50.50, and ideally above $51.15 then another attempt to push higher may result. A good first step would be to move and hold above the 50-hour SMA, currently $52.17.
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