Brent crude price and gold price declines could be short-lived
Gold and Brent crude weakness persists, yet wider uptrends raise questions over longevity of this sell-off.
Gold continues short-term pullback
Gold has been on the slide since topping out at $1611 last week. With confidence returning to the markets, the price of gold is coming under pressure.
However, with a wider uptrend in place for the past 17 months, it is likely that we will see the bulls come back into the fold before long. Although, with this pullback still not even at the 50% Fibonacci level, it is likely we will see further downside to come, with a break through $1563 required to negate this bearish short-term outlook.
Brent falls into trendline support
Brent crude has also been on the slide, with the price moving into trendline support after an almighty climbdown from $71.06.
However, much like gold, the wider uptrend remains intact for this market, with a decline below $60.20 required to bring about a more confident bearish outlook. Until then, watch out for the bulls to potentially come back into play around this trendline support or the 76.4% Fibonacci level ($62.76).
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