Gold price eases back as oil price rallies
Gold’s retracement continues for now, while oil has rallied in sympathy with equities.
Gold retracement still in play
The price of gold continues to hover around $1940, helping to mark time as the 50-day SMA plays catch-up. For bulls, this is a positive development in the longer-term; the pullback will help ‘reset’ the price after its gains earlier in the summer, and will also tempt in some further short positions, providing more fuel for a rally. Continued declines in the direction of $1868, the 50-day SMA, will help provide a better risk-reward outlook in due course. Bullish crossovers in stochastics and MACD will also point towards the prospect of a recovery.
WTI moves higher
The revival in risk-on sentiment will help crude to recover from its weakness last week. A push above $43 is still needed to provide a more bullish outlook, while sellers have to breach $41.50, a major level of support over the past month, in order to create any real traction for a bearish move.
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