Gold targets key resistance as oil falters at trendline resistance
While gold is looking to test recent highs, the oil price is retreating after rallying to trendline resistance.
Gold
Friday’s bounce put gold back on the front foot, and sets up another attempt to clear resistance above $1830. From there $1863 and $1875 come into view as targets.
The buyers have remained firmly in charge since early August, with no sign that the price is about to roll over and head back towards $1765 or lower.
WTI
By contrast it looks like oil could be creating a new lower high as it falls back from trendline resistance at $70. A further decline will target the August low towards $62.
After the bounce from the lows of mid-August the price may be consolidating, so bulls will want to see a move above $70 that opens the way to $73.80.
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