Charts of the Week: Gold Could Benefit From Trade War Jitters + Oil Bounces Off Key Support

Investors remain anxious following US President Trump´s recent tariff hike threat, and are asking themselves if this could wreck the stock market recovery that started in January.

In the GER30, traders are keeping a close eye on the psychologically important support level at 12,000 points. A clear break below that level could trigger further position covering, with next major support then seen at 11,829 points followed by the 200 DMA around 11,684 points.

GER30
GER30

Gold should in theory benefit from the sudden shift into safe havens, but the Dollar rally has slowed momentum. Nevertheless, the recent bounce off $1265 has been giving Gold bulls some hope, and a break above the falling trendline resistance from the February high would confirm the double bottom pattern.

XAUUSD
XAUUSD

Meanwhile, UKOIL (Brent) bounced off the 200 DMA yesterday, but still looks fragile. Concerns about a global trade war may slow down the Oil rally, and speculation about an output increase by OPEC is not helping either. The main levels to watch are the 200 DMA around $68.75, followed by the 38.2 % Fibo at 66.15.

UKOIL
UKOIL

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