Gold and Brent crude prices gain ground, yet bears likely to return
Brent rebounds off news of an attack in the Middle East, while gold gains could prove fleeting given recent breakdown.
Gold rebound persists, yet Fibonacci resistance could scupper gains
Gold has been regaining ground over the course of the week, with the price trading around the 61.8% Fibonacci retracement over the past 24 hours. This deep retracement zone between the 61.8% and 76.4% Fibonacci levels provides a key potential turning point.
Should we see a break through that zone, it would point towards a high likeliness of the recent uptrend continuing. However, until that happens there is a good chance that we will see the price of gold turn lower once more following the recent breakdown from the historical $1247 resistance level.
Brent crude rebounds amid Middle East turmoil
Reports of an attack on an oil tanker in the Strait of Hormuz has provided a spike in energy prices, with Brent rebounding sharply. Interestingly, that move came from the $59.23 level, meaning that we have now seen flatlining lows rather than the continuation of lower lows.
In any case, the situation is likely to be fluid, yet the downtrend remains the primary focus until we see a break through the $63.53 swing high. As such, a bearish picture remains in play, with another leg lower seemingly likely despite this temporary blip.
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