Gold price and Brent crude price losses ease amid potential recovery
Gold and Brent crude losses ease, with a recovery likely to come into play before long.
Gold consolidates after rally into trendline resistance
Gold has been consolidating after a deep 76.4% retracement rally on Wednesday. The wider picture remains bullish for gold, and thus the declines we are seeing since the 8 January peak are likely to be a retracement before we push higher again.
With that in mind, a bullish outlook is likely to come back into play soon enough. However, with the recent wider pullback yet to even reach the 50% level, there is a strong chance of another leg lower from here, with trendline resistance providing a potential spark for another bearish turn. As such, a bearish short-term picture remains in play unless we see a break through $1563 resistance.
Brent crude starts to tentatively regain ground after recent losses
Brent has been declining into the support zone between the 61.8% and 76.4% Fibonacci support levels.
Alongside an ascending trendline, this looks like a prime area for the market to turn higher from. With that in mind, the rally we have seen overnight looks like a potential tentative signal of impending upside. Watch for a break through $64.65 to provide greater confidence that this rebound will come to pass.
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