Gold price and Brent crude oil price expected to diverge

Gold and Brent crude look set to diverge as bullish signal in Brent is coupled with bearish gold expectations.

​Gold rallies into resistance and starts to roll over

Gold managed to rally back into the Tuesday high of $1498 yesterday, coming off the back of a failed attempt to break into the $1474 low. That could point towards some form of weakness coming into play, yet there is also a good chance that this is simply a precursor to further downside.

With the price turning lower this morning, watch out for a break below $1483 to bring about a bearish confirmation signal. Until then, there is a chance that we could continue the bullish intraday pressure seen over the past few days. A break through $1503 would be required to bring about a more bullish outlook.

Brent showing tentative signs of impending upside

Brent crude managed to rise through the $59.51 resistance level yesterday, bringing about a bullish signal following a period of consolidation around the 61.8% Fibonacci retracement.

Therefore, the gradual uptrend seen throughout October looks likely to persist before long, with a strong chance we will see a rise back towards the $60.53 peak from last Friday. A break below $58.56 would negate this bullish short-term outlook. ​


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