Oil and gold, similar reasons, different directions

At the brent oil index, Forecasts indicate a possibility of a decrease in the level of industrial demand for crude oil, given the concerns about pandemic conditions and the increase in cases of Covid19 delta variants in Asia, Europe, and the United States, which has led to lower oil prices.

Technically, the expected bottom head and shoulder pattern has failed, and the price has crossed down the important level of $70 per barrel range, and the possibility of a price decline in the short and mid-term has been strengthened. However, it should be noted that the price reaction to the support range of 68.88 will be significant, and there is a possibility of correction and a short-term ascent in this range.

On the other hand, in the gold market, due to the reduction of risk-taking in the financial markets, the demand for gold as a safe alternative to investment has increased, and the price has crossed the level of $ 1750.

Technically, the price has broken the mid-term average levels in the four-hour timeframe upwards, and the possibility of a mid-term price rise has been strengthened. Still, the price reaction to the essential 34-day average will be decisive.