Brent crude and gold declines could be short-lived
Gold and Brent crude declines could well be limited given the wider uptrends in play.
Gold consolidates after decline
Gold is consolidating after the declines evident through the second half of the week. We could see further downside, yet this current decline is viewed as a retracement of the rally from $1445.
As such, should we see further weakness it would be deemed a short-term phenomenon and a precursor to further gains. With that in mind, watch out for a likely move higher before long, with Fibonacci support providing potential turning points to watch out for. Only a break below $1445 would negate this wider bullish trend.
Brent declines into Fibonacci support
Brent crude is providing a similar picture to gold, with early gains turning to losses in the latter part of the week. Another similarity is the wider bullish trend in play, with price having declined into the 61.8% of the rally from $60.20.
That wider bullish trend points towards further upside, with the market likely to turn higher from this region between $64.35 and $62.76 due to the existence of trendline support and the 61.8% and 76.4% Fibonacci levels. Only with a break below $60.20 would this market look likely to create a wider bearish reversal signal.
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