Gold Prices Soar as Oil Reverses Course

The price of gold surged on Thursday after finding support at $4,319.61 to $4,230.51 and breaking above the 50-day moving average at $4,283.86.

This rally sent the market into a minor retracement zone at $4,384.59 to $4,405.59, but its sustainability is uncertain given the bearish trend on the daily swing chart.

The reversal was partly due to oil prices falling for the second session as Saudi Arabia pushed more barrels through Oman and traders pulled back from Middle East disruption bets.

This turn of events had a ripple effect, with Brent crude dropping towards the low $100s and the dollar index falling 0.2% to 100.07 after gaining 0.7% on Wednesday.