Gold price falls while oil price recovers from lows for now

Gold is moving back towards recent support, while oil remains in a downtrend despite rebounding from its huge loss yesterday.

Gold heads back towards support

Gold is in a descending triangle formation, with lower highs since Tuesday hitting support around $1470. A breakout above $1500 might provide a more bullish view, but given strength in the US dollar this might be short-lived.

Crucial support back in October and November was $1450, so if this is lost, a drop to long-term rising trendline support at $1420 may be the next development.

Brent rebounds from new decade low

The downward move in oil prices moved into fifth gear yesterday, with around 15% wiped off the Brent price in a day. A rebound from yesterday’s lows merely brings the 50-hour simple moving average (SMA) at $29 into view, and would create another lower high.

As with indices, there is as yet no sign of a bigger turnaround in the oil price, with no indication of any potential higher highs or higher lows yet.

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