Gold price supported after rally while oil drops back
Gold is looking to resume its recent move higher, while oil is under pressure as a new week begins.
Gold hovers near recent highs
The bounce from the low at the end of March carried the price briefly above the mid-March highs, before a small reversal on Friday. Buyers defended the lows on Friday and have continued to do so in early trading today, preventing an indication that a fresh move lower is underway. Further gains need to clear $1760 to provide further proof of a breakout.
WTI reverses last week’s small gains
Hopes of a recovery have been dashed as the price drops back towards the lows of last week and potentially sets up a bigger retracement towards $53.85 support, or the 100-day SMA at $54.63. The price has failed to make much headway to the upside, leaving the sellers increasingly in control. A rally back above $62 would signal a resumption of the move higher from November.
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