Gold and Brent start to reverse lower
Gold on the slide following yesterday's Fed meeting. Meanwhile, Brent crude is also starting to weaken following the recent rebound.
Gold breaks down following Fed failing
Gold has been declining off the back of a Federal Reserve (Fed) meeting which saw chairman Jerome Powell fail to transmit a dovish message despite providing the first rate cut since 2008.
The prospect of an easing phase has been a core driver of gold upside, yet we are seeing that undone somewhat after the Fed indicated that cuts would likely be few in number. The inability to break through the $1434 was key here, with shorter-term intraday charts highlighting a breakdown ahead of the meeting. We have since broken below the $1415 low, paving the way for a wider period of weakness. The next level of support to watch is $1400, with a whole host of historical levels to note below there ($1375 down to $1347). For the time being, watch for $1400 to break if this bearish picture is to continue developing.
![Gold chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/content-2-chart-images/XAUUSD-4-hours-2019_08_01-09h19.png)
Brent turning lower around trendline resistance
Brent has started to weaken after rallying towards trendline resistance earlier in the week. This market still looks like it is trading within a retracement phase given the break below $62.04 in mid-July.
Thus, while we could see another leg higher over the near term, we have seen a deep retracement (between 62.8% and 76.4%) and a move back into the trendline region. Therefore, there is a potential for a breakdown from here, which would be confirmed with a break below $62.86. watch for a break below $63.87 for an intraday bearish signal.
![Brent chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/content-2-chart-images/LCO-4-hours-2019_08_01-09h27.png)
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