Gold under pressure while Brent gunning for $89.04 to $89.46 zone
Gold drops back towards the $1800 region while Brent oil hits 7-year highs.
Gold falls back
The price of gold is pointing down again, having traded sideways over the past week, with the 55- and 200-day simple moving averages (SMA) at $1804.60 to $1800.60 being eyed.
Immediate downside pressure should be maintained while the precious metal stays below yesterday’s $1823 high. Only a currently unexpected rise above the next higher $1829 to $1832 early and mid-January highs would put the November high at $1877 back in play.
Brent hits 7-year high
The price of Brent crude oil has surged more than 13% since the start of the year amid concerns over tightness in the oil market.
It is now trading at seven-year highs and has the May 2010 high to October 2014 low resistance zone at $89.04 to $89.46 in its sights. Slightly further up lies minor psychological resistance at $90.00.
Immediate support comes in around the $85.85 October peak and at yesterday’s low at $85.14. While the latter level underpins, the two-month uptrend remains firmly in control.
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