Gold price and Brent crude oil price look primed for a move lower
Gold continues to reverse lower, while Brent is at risk of downside after hitting key resistance.
Gold continuing bearish reversal after Fibonacci resistance
Gold has been gradually turning lower from Fibonacci resistance, with the break below $1509 providing an intraday confirmation signal that this is likely to continue playing out for the near term.
With that in mind, further downside looks likely, with a break through the prior swing high of $1517 required to negate this short-term bearish picture. Until then, any upside looks like a selling opportunity for the precious metal.
Brent crude weakening from key resistance
Brent has been in consolidation mode of late, with the price failing to follow through on the head and shoulders formation of Thursday.
We have since seen the price rally back into the $59.23 resistance level. Given the prior respect of this level, there is a good chance we will see the price turn lower from here. The stochastic breakdown points towards waning momentum, adding confidence to that bearish intraday picture. An hourly close above that $59.23 level would bring about a more bullish short-term picture. Ultimately, the wider outlook will only be dictated by a decline below $57.47 or above $61.32.
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