Gold price risks fall while oil price girds itself for a rally

As risk appetite revives, gold is beginning to look vulnerable, while oil might be readying itself to rally.

Gold at risk of turn lower

The rally this week has been capped at $1480 for gold, with gains petering out below the 50 and 100-day simple moving averages (SMAs), with the former crossing below the latter once again.

The price is rebounding from the low around $1472, but if any rally today runs out of steam as the others this week, creating a lower high below trendline resistance from the 4 December high, then a bearish view will continue to evolve, reinforced by potential bearish crossovers in daily stochastics and moving average convergence divergence (MACD).

WTI braces for a new move higher

Gains have stalled around $58.50 all week for WTI, but with the recovery from $55.00 now in place, the push above this key resistance now needs to begin.

Having stabilised around $58.00 overnight, the price may now develop enough momentum to push above $59.00. The oversold reading in hourly stochastics could provide the entry point for such a trade, with a stop below $58.00 providing a strong risk-reward ratio.

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