Gold prices rally as oil bounce weakens
Gold is almost back at last week’s highs, while oil prices have slowed in their move higher.
Gold
Markets fall three times faster than they rise, or thereabouts. This has been displayed nicely in gold, which has slowly clawed back last week’s losses. It is now looking at moving back above the 200-day simple moving average (SMA) of $1794 and then on above last week’s highs at $1800.
Sellers will hope that the 200-day SMA holds back gains again, and that the new week sees gold retreat from this level and eat into the gains of the past four sessions.
WTI
For the past two days oil has obstinately refused to roll over, with dip buyers coming in at $81.
We might well be close to the end of this remarkable bounce, but what follows is tough to tell. A short correction could be enough to reset the clock here and provide room for further gains.
We have not yet broken rising trendline support, so it is probably too early to suggest that a bearish move is at hand.
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