Gold and Brent prices both likely to gain ground before long
Gold finds support on trendline support, while Brent crude rallies back towards a key resistance level.
Gold declines into trendline support
Gold has been consolidating around an ascending trendline, following a period of weakness last week. That ascending trendline remains crucial as we move forward, with the price of gold rising gradually alongside the trendline following a drop into the 61.8% Fibonacci support level.
With that in mind, there is a good chance we could see further upside as long as the price continues to respect the ascending trendline of support. Nevertheless, even if we did see a drop below this trendline, we need to see a break below the $1692 swing low to bring about a wider bearish implication. Until then, a bullish outlook remains in play whether it is from this trendline or Fibonacci support.
Brent crude rises back towards key resistance level
Brent has been on the rise as traders look towards the reopening of economies around the globe. That impending rise in demand is helping to keep the prices elevated within this recent recovery.
A break through the $37.11 level would be required to signal a continuation of this trend, with the price currently back at that key resistance level. As such, watch for whether we see a break through the $47.11 level to bring about a bullish short-term signal. Alternatively, a failure to break that level could bring short-term downside to build on the recent break below $34.39.
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