The yellow metal bearish trend remained intact. The XAU/USD continued advancing south yesterday. The price briefly recovered during the European session on Tuesday. Buyers managed to test the resistance 1290. However, after testing the level gold prices bounced downwards and extended their losses below 1280. The resistance is at 1280, the support comes in at 1270 dollar per ounce.
As the most probable scenario, we consider further moving downwards towards the level at 1270. Should the price break the level and sellers will drive the yellow metal to 1260.
Brent had a neutral day, staying within a narrow range between the current support and resistance yesterday. Buyers tried to push the price above 46.50 but failed to re-take the level. Oil prices bounced downwards and headed towards 45.50. Sellers met a barrier around the level, prices bounced off and stopped around 46.00. The resistance is at 46.50, the support comes in at 45.50 dollars per barrel.
If the bearish tone persists we expect a breakout of the level 45.50. In this scenario, sellers will move the price to 44.50. However, Brent oil is oversold and we anticipate a near-term correction to ease the downward pressure. Brent may recover to 47.50.
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