Gold and Brent gain ground, but will it last?
Gold and Brent are pushing higher, confounding recent bearish signals. Is this the start of a wider bullish phase?
Gold gradually regains ground ahead of Fed
Gold continues to regain ground today, in a move that looks like it could be a retracement of the $1434-$1411 decline.
This rally has taken the market into the 76.4% Fibonacci retracement level, a key level in determining whether these gains are going to continue or not. A rally through $1434 would bring a bullish picture back into play following the recent trendline break, yet there is a good chance of a turn lower until that break occurs. With the Federal Reserve (Fed) up tomorrow, gold volatility is likely to pick up.
Brent breaks through key swing-high
Brent has managed to rally through the $63.79 resistance level overnight, bringing about a more bullish picture.
The recent creation of lower highs had not been accompanied by a new low, and ultimately the bulls have won out. Watch for further upside as a result, with a break through $64.62 key to providing a wider bullish picture once again.
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