Gold price falls but oil price holds steady
Gold is struggling in the general risk-on atmosphere, while oil prices are consolidating after recent gains.
Gold drifts lower again
The gold price was able to summon up only a limited rebound yesterday, and while it has pushed higher overnight it remains stuck in a downtrend from last Wednesday’s high.
It has yet to challenge the 50-hour simple moving average (SMA) of $1460, something that may help to determine the next direction – usually downtrends see the price unable to move above this moving average, so if we have a bounce towards $1460 that then turns lower, then a potential sell signal is in place. A recovery above $1460 is needed to suggest a more bullish near-term view.
WTI consolidates after bounce
Yesterday’s dip to the 200-hour SMA ($57.26) found buyers, although so far the WTI price has shown little inclination to move above $58.00.
The recovery from last week’s low provides a more bullish view, and would still point towards further upside in the near-term. However, a drop back below $57.20 would be a negative development. Above $58.50 the price heads to $59.90 and the top end of the rising channel.
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