Gold price poised to rally as oil price weakens

A pullback for gold may provide a fresh higher low, but oil prices are continuing to drop.

Gold’s uptrend poised to revive

The pullback from the high of the week has seen the gold price test the rising 100-hour simple moving average (SMA) at $1795.

A turn higher for hourly stochastics or moving average convergence/divergence (MACD) could signal that yet another higher low is in place, raising the prospect of a move back towards $1820 and higher.

WTI stumbles after sharp losses

For WTI, a sharp drop yesterday wiped out the gains made at great effort over the past two weeks.

Further declines below $38.90 will open the path to $37.00 and the late-June lows. Attempts to rally yesterday failed around $40.00, so we will need to see this level reclaimed for the bullish view to receive a boost.

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