Gold turning lows from $1400, while Brent crude rises off Middle East tensions

Gold is turning lower after a huge rise into $1400, while crude is regaining ground in the face of US-Iran tensions.

Oil barrel Source: Bloomberg

Gold starts to retrace after huge gains

Gold has seen a momentous week, with the price breaking through $1375 to bring about a new five-year high. We have since seen a break through the $1400 market for the first time in six years.

Profit taking, however, appears to be in play this morning, with the price moving sharply lower. Watch for a break below the $1386 level to bring about a more bearish short-term view, with the crucial $1375 support level coming into play below there. Ultimately, further upside looks very likely, yet we could move into a short-term retracement phase given the size of this recent breakout. Keep an eye out for the US Federal Reserve (Fed) and US-Iran developments as the drivers of market sentiment.

Gold chart Source: ProRealTime

Gold chart Source: ProRealTime

Brent crude rises through key breakout level amid rising Middle East tensions

Brent rises through key breakout level as the US decided against a retaliatory attack on Iran overnight. The prospect of a further breakdown in relations between the two countries gives markets plenty reasoning to buy oil.

The rise through $63.54 provides us with a bullish breakout signal for the short term, with further upside likely from here. Watch for that level to provide support from here, with gains looking likely if the price remains above $63.54. A decline below that support level would bring about a likely retracement of the $60.91-$64.68 rally.

Brent chart Source: ProRealTime

Brent chart Source: ProRealTime


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