Brent crude and gold weakness could provide buying opportunity
Gold and Brent crude slump, yet wider bullish trend points towards likely resurgence before long.
Gold heads lower once again
Gold has been on the slide since Donald Trump calmed fears over a potential war with Iran. Instead we are seeing markets move their focus to more optimistic topics such as the US-China trade deal signing on Wednesday.
Given the size of the recent rally, it makes sense to expect further downside from here. As such, a bearish outlook is in play, with a break below $1540 providing greater confidence of such a bearish move coming into play. However, the wider outlook remains bullish and thus any short-term downside looks like a retracement and precursor to further gains unless we break below $1445.
Brent slump slows at Fibonacci support
Brent crude saw sharp losses off the back of a sharp spike in response to the US-Iran tensions.
Despite this decline, the wider trend remains bullish until we see a break below $6020. Given the recent respect of the $64.35 support level (61.8% Fibonacci), it makes sense to watch out for a potential move higher from here. Should we break this level, watch out for support at an ascending trendline and the 76.4% Fibonacci retracement at $62.76.
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