Brent turns lower, as bearish picture comes back into play

Gold is rallying, with recent volatility continuing to play out. Meanwhile, Brent is turning lower as the wider bearish picture comes into play once again.

Gold volatile as consolidation phase continues

Gold has been very volatile of late, with the market swinging sharply higher today. The wider creation of lower highs points towards this recent rebound falling short at some point.

However, given the mid-sized retracement thus far, there is a good chance we could see the price rise through $1287 to bring about a deeper pullback into the $1290 region. Thus the outlook for the short term will be reliant upon whether $1287 is impacted or not. For the longer term, we would need to see a break through $1303 to point towards a bullish wider picture come into play. Until then, the sellers are expected to return before long.

Gold chart Source: ProRealTime

Gold chart Source: ProRealTime

Brent crude turning lower after recent gains

Brent is turning lower this week, following on from a rebound into the $69.33 level. Ultimately, with the price having dropped below the $68.72 support level, there is a good chance that this recent rebound is simply a precursor to further downside.

With the selling starting to gain traction once again, there is a chance we could see that wider bearish trend pick up again from here. However, given the relatively small retracement thus far, another leg higher is a distinct possibility. Watch for a break below $67.42 to provide greater confidence that the selling will continue.

Brent chart Source: ProRealTime

Brent chart Source: ProRealTime


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