Gold price turns higher as Brent crude price breaks key support

Gold starts to turn higher after recent weakness, while Brent crude breaks key support.

​Gold rebounds after retracement in 61.8% Fibonacci level

Gold weakness seen over the course of the past few days always looked like a retracement of the rally from $1692 despite the secondary leg lower seen on Wednesday and Thursday. This ABC style retracement has taken us into the 61.8% Fibonacci support level, with gold heading higher as we head towards the weekend.

A break below the $1692 level would bring about significant questions over the possibility of a wider pullback. Until then, a bullish outlook is in play for gold.

Brent breaks key support after crucial week

Brent gains in the lead-up to the June contract end seem to have taken its toll, with the price breaking back below the $34.39 level this morning. That could bring further downside as we start to retrace the wider $29.24-$37.11 rally.

Quite how deep such a retracement will go remains to be seen, yet further downside does look likely now that we have broken the $34.38 level. A rally back up through $37.11 would signal a continuation of the recent bullish trend. ​

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