Gold price falls below key support, while Brent crude oil price breaches resistance
Gold has declined below key support amid rise in equities, while Brent crude is on the rise as it hits a five-week high.
Gold on the rise after break below key support
Gold has continued its decline, with the price falling below the notable $1492 support level yesterday.
That points towards the potential for further downside, yet we are seeing some upside momentum in early trade today. A break through the $1515 level would raise the likeliness of a longer-lasting bullish move, yet until that happens it looks likely that the price will falter again soon.
Brent crude hits new five-week high
Brent reached a five-week high yesterday, with fears over a shift in strategy from Saudi Arabia being allayed after early comments from the new energy minister.
The four-hour chart highlights a trendline break off the back of this rise out of a consolidation zone. However, it is also worthwhile noting the wider downtrend remains intact, with the 76.4% Fibonacci retracement at $63.15 a key resistance level up ahead. For now, the short-term bullish theme looks like it could continue, with the reaction to that Fibonacci level likely to prove telling. On the flip side, we would need to see a break below $61.32 and $59.23 to bring the bearish picture back into play.
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