Gold price and oil price both make gains
Both gold and oil are on the up in early trading, the former building on two days of small gains while the latter attempts to reverse the weakness of last Thursday and Friday.
Gold benefits from risk-off move in equities
The drop in equities has helped gold to make some headway, although Friday’s price action saw an even bigger bounce than Thursday’s thrown back just as easily. However, the price has moved up again this morning, moving back to the $1865 area, and further gains will target $1875 and then the 100-day SMA at $1879. A longer-term bullish view develops with a move above $1900. If the sellers can push the price back down today that will help contain bullish sentiment, but they need to move below $1835 to really indicate that a broader downward move is underway.
WTI moves up after two previous bounces fail
In WTI too attempts at a rally on Thursday and Friday both met with selling, so it will be interesting to see if today is any different. Sellers have held sway here over the past four sessions, although only modestly, pushing the price to a one-week low. If today’s bounce does change the short-term view, then it will open the door to $54 and higher.
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