WTI and gold prices gain ground as the dollar weakens

Gold and WTI gain ground as the dollar weakens, but can crude continue its rise as oversupply remains a key concern?

Gold pushes higher after Fed continue their accommodative approach

Gold has started to reverse higher once more, following a retracement into the 61.8% Fibonacci support level. Given the wider uptrend seen over the past 20 months, there is a good chance we will see further upside from here.

As such, the fact that we are seeing some downside come into play now could be a good opportunity to look for longs, with a break below the $1709 level required to bring about a more bearish short-term picture. Until that level is broken, short-term downside is viewed as a buying opportunity. However, even if that happens, the wider outlook would signal such a breakdown as being a likely retracement of the rally from $1660. Thus, a wider bullish outlook remains in play unless $1660 is broken.

WTI regains ground as markets react to drug trial results

WTI has managed to break higher following positive news on the fight against the coronavirus, with the price breaking through the $18.92 resistance level. Whether this holds remains to be seen, as we remain within an environment of oversupply despite the Organisation of the Petroleum Exporting Countries Plus (OPEC+) cuts that are due to start on Friday.

Watch for whether we can maintain this short-term uptrend, with trendline support providing a key element to this path higher. There is a chance we will see further short-term gains given the current respect on this line. However, should the price break below, there is a chance we start to see this rebound ease off.

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