Gold and Brent crude oil prices look set for another bearish turn
Gold and brent look set for further weakness, with recent rebounds seemingly a precursor to another bout of selling.
Gold rally unlikely to last following recent breakdown
Gold has been showing signs of weakness this week, with the price reversing lower since hitting the crucial $1347 swing high.
A break below the $1330 and $1327 levels points towards a potential reversal coming into shape after respecting that $1347 region. With the price currently moving higher, there is a good chance we are looking at a retracement. The 61.8%-76.4% Fibonacci zone of resistance is going to be key as a potential area for shorts. Only with a break through the $1348 level would we see a bullish outlook return.
Brent crude breaks lower as bearish picture returns
Brent has managed to break through the $61.47-$61.67 support zone overnight, to seemingly put to bed the idea of a recovery.
The rebound seen through the back end of last week seems to be over now, and with the short-term head-and-shoulders pattern being completed, it looks like we will see further downside to come. A bearish picture is now back in play, with a break below $59.95 providing us with the next bearish signal.
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