Gold price consolidates, as Brent crude price slides towards key support
Gold is on the rise, yet trendline resistance could keep this haven in consolidation mode. Meanwhile, Brent crude is heading lower, with key support at risk of being broken.
Gold rises into triangle resistance
Gold has been in consolidation mode over recent days, with the price trading within a symmetrical triangle pattern. The formation of lower highs looks to come into play once again, with this current rally taking us towards trendline resistance.
A break of trendline and $1531 resistance would bring a more bullish short-term picture, yet a bearish turn looks likely until such an upside break happens. Of course, despite the potential for a short-term move lower, we remain within consolidation mode until a break occurs in either direction.
Brent breaking towards key support
Brent is selling off this morning, with the price heading towards a critical support level. The wider creation of higher lows would be negated with a break below $57.90.
Thus, while we do look likely to see further downside for now, it makes sense to await such a break to bring about a bearish picture on the longer time frames. To the upside, we would need to start seeing swing highs broken to bring about a new bullish short-term picture. Thus, watch for a rise through $58.76 for such a move to come into play.
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