Gold and Brent crude likely to decline further
Gold and Brent look likely to decline, with wider risk-on sentiment doing little to help crude prices.
Gold turning lower after deep retracement
Gold has been on the slide once again, following a move into the deep retracement zone between the 76.4% and 61.8% Fibonacci levels.
The recent decline below $1563 did point towards the possibility that this recent rally could be a precursor to another move lower. However, it makes sense to watch out for a break below $1561 if we are looking for confirmation of impending weakness for the price of gold.
Brent expected to decline from trendline resistance
Brent crude has seen moderate gains overnight, with the price moving towards the trendline resistance once again.
The downtrend seen since the turn of the year remains in play, and thus it makes sense to look for further downside to continue that trend. Conversely, we would need to see a break through the $56.61 level to bring about a more bullish short-term outlook.
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