Gold price and Brent crude price look upwards after decline

The recent gold and Brent crude declines could bring about a bullish reversal.

Gold looks set to push higher after brief retracement

Gold declined into a deep retracement yesterday, with the price dropping into the area between the 61.8% and 76.4% Fibonacci levels.

Coming off the back of a rise through $1563, this pullback is likely to be a short-term phenomenon before we push higher once again. That rise is starting to play out, and thus today looks likely to see further upside come into play. A break below $1536 would be required to negate this bullish outlook.

Brent crude back at key retracement level

Brent has declined into a deep retracement following a recent rally through the $64.65 resistance level. That break signals a possible reversal higher before long.

However, we are starting to see some negative rhetoric around how this Chinese virus could hurt demand for crude. Thus, we could see further downside, but it would require a break below $63.16 to bring greater confidence of such a move. Until then, we will be keeping a close eye for signs of a bullish short-term resurgence from this current 76.4% retracement ($63.65).

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