Gold and Crude Oil Link – What Does It Say?

Trading position (short-term; our opinion): Short positions (with a stop-loss order at $56.45 and an initial downside target at $45.81) are justified from the risk/reward perspective. On Monday, crude oil lost 1.52% after oil investors reacted to Friday’s Baker Hughes’ report, which showed that U.S. drillers added 17 rigs, which was the 13th increase in the past 14 weeks. Thanks to this news light crude reversed and declined to the previously-broken short-term support/resistance line. Will it manage to stop oil bears in the coming days? Is it possible that the relationship between gold and crude oil give us more clues about oil’s future moves?

First published here: Gold and Crude Oil Link – What Does It Say?