Gold price and Brent crude oil price reverse after US tariffs announcement
Gold and Brent reverse, with a delay to the US-China tariffs bringing gold weakness and Brent strength.
Gold stabilises after yesterday's volatility
Gold saw sharp losses off the back of the news that the US has delayed much of the tariffs planned for 1 September, sparking a risk-on move. We have since seen prices stabilise in a position that would previously be deemed a retracement level.
However, we did see a fleeting lower low yesterday in all that volatility, thus raising the chance of a bearish phase coming into play. Thus, for the time being, it is a case of waiting to see if we can essentially ignore that move to start regaining ground within the recent uptrend, or else break back below that low of $1480 to bring a bearish picture for the near term.
Brent crude easing back after sharp gains
Brent rose sharply yesterday, bringing what looks like another retracement phase within the bearish trend of the past month.
With the price having posted a medium-size retracement, there is still grounds to believe we could see further upside in the short term. Much will come down to whether we see this selling ramp up. For now, given the shallow nature of these declines, they look like a precursor to further upside. Should that occur, it would simply take us into the deeper 61.8% or 76.4% Fibonacci retracement levels. Ultimately, the wider bearish outlook remains in play unless we see a break above $65.42.
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