Gold prices rise as oil price comes under pressure
Gold has continued its modest rally, but oil is struggling after sharp losses yesterday.
Gold makes further headway
The steady gains in gold of the past few days have given way to small losses this morning, although the modest rebound is not yet under threat. A move back below $1860 would certainly hand the initiative back to the sellers, and bring a test of $1851 into view. If the price can hold above $1870 however then the buyers continue to hold sway.
WTI under pressure after drop
Oil prices fell sharply yesterday, dropping below trendline support and the 100-day SMA ($39.40). Further declines below $38.50 would being $36 into view once again, the low from earlier in the month. If the price can hold around $39 it may continue to build a base that will allow it to push back towards $41.07, the 50-day SMA, where gains stalled in the middle of the month.
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