Gold price rallies but oil price nosedives

Oil prices have slumped to multi-year lows as a price war breaks out between Saudi Arabia and Russia. This dramatic news has, unsurprisingly, boosted gold once more.

Gold boosted by safe haven flow

The climb towards $1700 continues for gold, while the price hit this level overnight it has not held its ground.

Further gains above $1700 target $1780 and then $1924 in the longer term. The price has found support at $1660, as it did on Friday, providing a support level, with $1640 below this as another area of possible support.

WTI plunges to new depths

WTI's cataclysmic gap down will make it hard to assess the next few hours, let alone the next few days, in terms of price action. Such high volatility will lead to continued wild swings, and it will take time for new levels to emerge.

The price appears determined to hold above 2016’s lows of $27.40, so for now we have a downside target to watch. One small bullish view might emerge if the price can begin to clamber above $33.40 and the lower bound of the overnight gap.

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