Gold and Brent crude prices head higher, yet oil rally remains at risk
Gold and Brent crude gain ground, yet it is gold that looks primed for a persistent upward move after recently bottoming out.
Gold back onto a more bullish footing
Gold has been regaining ground over the course of this week, with a huge Federal Reserve (Fed) quantitative easing (QE) package helping boost sentiment around this precious metal. Given that the wider decline failed to break below the $1445 support level, the uptrend remains intact.
With that in mind, the short-term picture is bullish, with the rise through $1585 providing another signal that we are set to see further upside. A bullish view is therefore in play, with a break below $1558 required to negate this outlook.
Brent crude could weaken from trendline resistance
Brent gains have taken us into trendline resistance, raising the chance of a bearish turn today. The wider bearish picture remains in play, with a break through $32.21 required to negate this downtrend.
The tentative move below $29.54 signals a potential downward move in the offing, with another move back below that level providing us with greater confidence of potential impending weakness.
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