Gold and Brent diverge, as gold price hits six-year high
Gold has surged into a fresh six-year high, while Brent looks set to resume recent sell-off.
Gold surges into six-year high
Gold managed to surge into a six-year high after US President Donald Trump proposed 10% tariffs on $30 billion worth of Chinese imports, starting on 1 September. Whether that will come to fruition remains to be seen, yet we are seeing risk-off sentiment permeate throughout markets to the benefit of gold.
With the price having broken through that $1453 level, there is a good chance that we will see further upside come into play from here. Watch for a break below $1430 to negate this short-term bullish signal.
Brent losses to persist after head and shoulders
Brent is turning lower once more following on from a Friday rebound.
The sharp decline last week provided a bearish head and shoulders completion after price broke below $61.08. That points towards further downside from here, with the next major support level coming at the $60.00 handle.
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