Gold price and Brent crude oil price ease back around trendline support
Gold and Brent ease back, as trendline support comes into play.
Gold tumbles as risks fade
Gold broke through trendline support yesterday, as fading impeachment fears were accompanied by US President Donald Trump comments that alluded to an impending deal with China.
We have seen the price moderately gain ground overnight, yet with the price turning lower it seems there could be further downside to come yet. A break below $1501 would point towards further short-term losses, yet there is also a case to be had that we are looking at a retracement of the rally from $1483 which points towards the bulls coming back into play before long. As such, while short-term downside still looks likely, watch for support to come in before long to build on the bullish break through $1524 seen on Monday.
Brent crude falling back towards trendline support
Brent crude has been on the slide since the Saudi Arabia attacks, with the price having now dropped back into the peak seen on that Friday close.
Yesterday we saw the price respect a confluence of tendline, gap and the 200-period simple moving average (SMA) support, with the price subsequently rebounding off these levels. However, with the price turning lower again, there is a chance we will see another decline into this confluence of support today. As such, the ability or inability to break through this area of support will be key in determining whether this recent bearish price action will continue or not.
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