Gold price drifts into key support, while Brent crude oil price heads higher
Gold starts to show signs of another potential bearish move, while Brent gradually gains ground.
Gold showing signs of impending downturn
Gold is, once again, looking primed for a period of downside, with the recent rally failing to provide momentum to the upside. Instead, we are seeing its price fall back into the $1493-$1496 support zone, which if broken would lead to further downside for gold.
As such, watch for a break below support as a bearish signal, with the recent rebound providing us with a potential area to place stop losses (above $1509). A break through that $1509 level would bring a more bullish picture into play.
Brent looks to regain further ground
Brent has been regaining ground over the past two weeks, with the price retracing the losses seen around the turn of the month. While this does look like a retracement, there is still a good chance of a break through the $61.32 level to bring a rally back towards trendline resistance.
However, even if that does play out, it looks likely that this rally is a short-term phenomenon, with further downside to come. Watch for a break below the prior intraday swing low as a bearish signal, with $58.63 representing that current level to watch.
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