Gold price eases off while oil price drops below support

Gold has suffered its first serious reverse in weeks, but there seems no sign of a rebound for Brent crude.

Gold’s rally begins to wane

The gold price reversed yesterday, and has continued to drop, falling below the 200-hour simple moving average (SMA) for the first time in two weeks.

Further declines below a possible $1565 support target $1557. A lower high from here would be a bearish development and suggest that the January rally has finally run its course.

Brent falls below key support

The Brent price fell below $56.00 support yesterday, with only a slight rebound to provide some hope for bulls this morning.

The relentless downward move seems set to continue, given that the price has been unable to establish a higher high over the past month. This would require a move above $56.50 at least. Further declines still target the December 2018 low at $50.25.

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