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.

Oil Source: Bloomberg

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.

Gold chart Source: ProRealTime

Gold chart Source: ProRealTime

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.

Brent crude chart Source: ProRealTime

Brent crude chart Source: ProRealTime


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