Gold and Brent crude prices push higher in tandem
Gold and Brent crude push higher, with both markets expected to see further gains.
Gold ascent halts at key resistance level
Gold has been on the rise throughout the week, with the past two days seeing that bullish momentum really pick up pace. This has taken us into the $1611 resistance level, which was established on 8 January.
A break through that level would bring about a fresh six-year high. The price is stuck between two trendlines, which could provide support or resistance. Given the consolidation we are currently seeing, it makes sense to await the resolution at this critical resistance level. A break below $1602 would bring about a more bearish short-term picture, providing a potential retracement of the rally from $1579. Conversely, a break through this $1611 level would point towards yet another leg higher following a minimal pullback.
Brent crude rallies into trendline resistance
Brent has been on the rise, with recent losses now being reversed following a bullish break through $56.61 resistance. The subsequent rally has taken us back into a long-term inside trendline dating back to January 2016.
Keep an eye out for this trendline today, given the role it could play in seeing Brent ease back somewhat. However, further upside does look likely and thus any short-term downside would be deemed a retracement before we push higher once more. This bullish outlook holds unless we see a break below the $56.21 support level.
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