Gold price and Brent crude oil price expected to turn lower before long
Gold at risk of a bearish turn, while Brent gains ground in what looks like a precursor to further downside.
Gold turning lower from Fibonacci resistance
Gold has been showing tentative signs of weakness of late, with the break below $1488 on Tuesday potentially paving the way for further downside.
Given the recent gains, this is obviously a risky play. However, with the price finding it difficult to break through the 76.4% Fibonacci retracement ($1522), there is a good chance we will turn lower from here. A break through the $1508 would provide a bearish confirmation signal for that view. Otherwise, a break through the $1535 level would point towards another leg higher for this precious metal.
Brent crude on the rise after recent breakdown
Brent is regaining ground this morning, following on from a sharp decline since Tuesday’s peak of $61.35. The break below $57.73 yesterday points towards a high likeliness of further downside, yet it seems we are destined to see an upward retracement for the time being.
A break through the $59.21 mark would point towards a retracement of the wider decline from $61.32. Given the fact we have seen a break through the 76.4% retracement level of $58.80, such an upward move does seem likely for the near term. However, until that wider $61.32 level is broken, such short-term upside simply looks like a retracement before we turn lower once again.
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