Gold price and Brent crude oil price start to turn higher after recent losses
Gold is attempting to recover from yesterday’s Fed-fueled losses. Meanwhile, Brent is finding support after reversing much of the weekend gap caused by attacks on Saudi Arabia.
Gold gaining ground after decline into key support
Gold declined sharply after markets perceived yesterday’s Federal Reserve (Fed) meeting as being less dovish than hoped.
The prospect of widespread easing has boosted gold demand, yet with the Fed’s action likely to be short-lived, we are seeing some of that gold upside ease. The wider picture remains bullish, yet a decline below the $1480 mark would certainly provide a more bearish outlook for the near term. For today, the price is expected to range once more, with a break through $1512 or $1484 required to signal a potential directional break building.
Brent crude finds support on Fibonacci level
Brent has reversed a significant amount of the weekend’s gap, with the Saudis assuring markets that production will soon be back on track despite a huge attack on their facilities.
While that has reversed much of the upside, the geopolitical picture remains heightened. Thus, there is still a good chance we could see some short-term gains come into play. The price has thus far respected the 61.8% Fibonacci support perfectly at $62.50. As such, watch for a break through $64.37 and a rise above 20 on the stochastic for the bullish picture to re-emerge.
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