Gold upside looking likely, while Brent bears are expected to return
Gold and Brent drift lower, yet divergence looks likely amid a bullish gold outlook and bearish Brent picture.
Gold weakness likely to provide buying opportunity
Gold managed to surge up through the $1425 swing high yesterday, with the prospect of a looser European Central Bank (ECB) and US Federal Reserve (Fed) driving greater gold demand.
The wider bullish picture remains in play following a rise through a huge amount of resistance in June. The break through $1425 points towards an eventual rise through $1439, so it makes sense to see this pullback as a buying opportunity rather than the beginning of a bearish phase. Thus, a bullish outlook remains in play unless the price falls below $1382 support.
Brent crude expected to fall further after trendline break
The subsequent rebound has taken the price back into that key $64.01 breakdown level, with the sellers coming back into play. Given that initial breakdown on Tuesday, further losses look very likely for Brent.
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