Gold price and Brent crude price likely to rise despite early downside
Gold and Brent crude weakness seen overnight is unlikely to stifle wider bullish outlook.
Gold eases back within recent uptrend
Gold is easing back after the recent rise back towards $1789 resistance. The inability to break through that resistance level could be a warning sign, but the uptrend does still remain intact unless we see a break below the $1757 swing low from last week.
With that in mind, the current move lower looks to be a potential buying opportunity unless the price breaks that $1757 support level.
Brent remains within bullish trend despite overnight losses
Brent has been on the slide overnight, with the price falling back towards the crucial $42.32 support level. A break below that point would point towards further downside over the short term.
However, with the price falling back towards the lower end of an ascending standard deviation channel, there is a chance we will see the price move higher from here. Given the uptrend in play over recent months, a rise through the $43.96 looks likely before long as the price of Brent continues its ascent. Ultimately, we would need to see the $39.68 level broken to bring about a wider bearish outlook.
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