Gold’s rally falters as oil edges up
Gold has run into some resistance in its current bounce, but for oil the previous two days of weakness is already seeing a small reversal.
Gold
Buyers will be asking whether the failure to hold Thursday’s gains means that a reversal is in the offing, bringing the recent bounce to an end. This view would be strengthened with a drop back below $1790. Alternately, if the gold price holds above $1790 then a continuation of the recent bounce could still be in play, targeting $1830 in the first instance.
WTI
Crude oil stabilised yesterday, and with today seeing a higher low from yesterday it may well be that a new leg higher is beginning that will target the week’s high. This view would be negated with a drop below $70, which would suggest a deeper retracement that remains within the current uptrend.
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