Gold price retraces recent gains, while we await a major Brent crude oil price breakdown
Gold is easing back after the recent surge, yet Brent crude is trading around a key support, following a recent head and shoulders completion.
Gold pullback likely to be a retracement
Gold has eased back overnight, with the haven losing ground as stock markets rebound.
The key here is whether we break below the $1453 swing low or not. Should that occur, we would be looking at a wider retracement of the $1400-$1475 rally. Until then, there is still a good chance we push higher from here, with the price of gold clearly gaining prominence amid the threat of an intensified US-China trade war.
Brent crude builds on bearish head and shoulders pattern
Brent continued its declines yesterday, with the price fleetingly hitting the lowest level in almost seven years.
That points towards a likely next leg lower before long, which would be building on the bearish head and shoulders formation established over the past month. Should we see that next leg lower come into play, a decline below the $59.23 mark would be the signal that could spark another sell-off for crude prices.
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