Gold reaches key resistance, while Brent falls into critical support
Gold upside could be limited by key resistance zone, while Brent crude is heading back into a critical support level.
Gold regaining ground from Fibonacci support
Gold has been regaining ground after the initial declines seen yesterday, with the price having found support at the 61.8% Fibonacci retracement.
That $1334 level seems to have held for now, yet we have seen the price move back into a notable resistance zone around $1347-$1348. That represents both the February peak, alongside the high from 7 June. Ultimately, we are seeing the price of gold trading around a critical zone of resistance, with a host of historical levels coming into play from here. While the uptrend remains intact, there is a significant number of hurdles that are needed to overcome for the price of gold to have a clear run upwards. Thus, further gains are possible, yet caution is warranted until we break through the $1375 level. To the downside, watch for a break below $1333 to signal a more bearish picture coming into play.
Brent crude declines towards key support once again
Last week’s worries over the growing tension in the Middle East seem to be behind us, with Brent’s bearish trend coming back into play once more.
Crucially, we are seeing a move back into the key $59.23 support level, which capped the past two downside moves. The ability to break through that support level is going to be key in confirming the resumption of the bearish trend, with a rally through $62.22 required to bring about a more bullish picture.
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