Gold and Brent crude prices push higher in tandem
Gold and Brent crude push higher, with anticipation of a recession and potential OPEC+ deal providing short-term drivers.
Gold continues to push higher
Gold has been driving higher over the past week, with sideways consolidation giving way to strong upward moves. We appear to be entering another consolidation/retracement phase, pointing towards a likely pause in this story despite the expectations of further upside.
As such, long positions are preferred on either a deep retracement ($1622-$1632) or on the breakout back through $1674. A break below $1606 would be required to negate this bullish outlook.
Brent rallies into Monday peak
Brent has managed to claw back the losses seen since yesterday’s peak of $34.52, with the price moving back in to close the weekend gap. With much anticipation over the impending OPEC+ (Organization of the Petroleum Exporting Countries [OPEC] members plus Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan) meeting and potential production cut, the potential of a big collective effort to lift prices is seemingly doing its job for now.
Whether an agreement is reached that will be satisfactory for markets remains to be seen. However, for now we will be watching for a potential break through $35.14 to move away from this recent period of consolidation. Should that occur, we would be looking for further upside as we head towards the $36.36 peak from Thursday. Otherwise, a failed meeting could bring significant downside, with the bearish trend coming back into play below $32.34.
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