Gold price and Brent crude oil price at risk of another bearish shift
Gold and Brent crude showing signs of potential impending weakness despite recent gains.
Gold showing signs of weakness following rebound
The gold rally has been coming under pressure following the sharp decline below $1488 on Tuesday. With the price rallying into the 76.4% Fibonacci resistance level since, we are starting to see a bearish picture emerge.
The failure to maintain higher lows adds another string to that bow, with the price having declined below the $1509 low. That intraday double-top formation brings about a heightened chance of a breakdown from here. As such, a bearish short-term picture is in play, with a break through the overnight peak of $1524 required to bring about a more positive view.
Brent crude at risk of another leg lower
Brent has seen huge volatility throughout the course of the week, with the price rebounding from $58.00 to $61.50 on Tuesday, only to reverse that just a day later.
While we have seen the price rise from that key $58.00 level overnight, the gradual nature of this recovery points towards a potential breakdown before long. Watch out for a break below the $58.63 level as a bearish confirmation.
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