Gold continues to slide but oil bounces off uptrend line
While gold remains under pressure, Brent crude oil bounces off technical support as traders assess ongoing peace talks between Russia and Ukraine.
Gold trades below 50% retracement of February to March advance
Gold continues to decline, having so far given back around 7% since last week’s $2,070 per troy ounce high.
This as investors look forward to an expected US Federal Reserve (Fed) rate hike of 25 basis points accompanied by a hawkish statement on Wednesday at 6pm GMT and hope for a positive outcome in Russia-Ukraine talks which are now in their fifth round as the war in Ukraine enters its third week.
The precious metal dropped below the 50% retracement of the February to March advance at $1,926 and is approaching the 61.8% Fibonacci retracement at $1,890 and the 24 February low at $1,879.
Minor resistance is found between the $1,950 1 March high and the 38.2% Fibonacci retracement at $1,960. Further, more significant, resistance sits between the $1,973 to $1,975 September 2020 and February 2022 highs.
Brent bounces off four-month uptrend line
Brent crude oil’s bearish reversal and swift slide by over 25% from its $131.51 14-year high seen a week ago amid ongoing peace talks between Russia and Ukraine has taken it to the four-month uptrend line at $96.02 from which it is currently bouncing back.
The area between the 24 February high at $102.58 and the 9 March low at $104.25 is to offer short-term resistance today. Further up resistance can be spotted at the 4 March $109.02 low.
Were yesterday’s low at $96.02 to be slipped through, the 55-day simple moving average (SMA) and 25 February low at $93.26 to $92.93 would be next in line.
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