Gold price rallies while oil moves back to October lows
Gold has benefited from an outbreak of risk aversion, while oil has continued its ongoing fall, heading rapidly back to lows seen four months ago.
Gold on the up thanks to risk aversion
Gold has begun the week with a gap higher, and while it has edged back so far in Monday’s session the overall outlook remains bullish.
Daily stochastics may well provide a bullish crossover today, while moving average convergence/divergence (MACD) is not far behind, suggesting that further gains will take the price on towards $1600. A reversal below $1550 is needed to provide a more bearish short-term view.
WTI heads back to October lows
Having declined sharply since the beginning of the year, the WTI price has continued to fall this morning.
Almost all the Q4 2019 rally has been surrendered, and the price now targets support at $51.13. A rally back to $54.00 would close the overnight gap, but a move back above $56.00 is needed to clear the lower high from Friday and suggest that a move higher is underway.
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