CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Established in 1974
Over 185,000 clients worldwide
15,000 markets worldwide

Levels to watch: gold, silver & crude

Precious metals are in retreat, while oil prices have lost their bullish momentum. 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Gold bars
Source: Bloomberg

Gold slips lower once more
The swift drop in gold this morning clears the way for a potential test of the $1150 level, which still hovers in the background as a promising support level. Daily stochastics have yet to turn bearish, but the relative strength index has slipped lower again, indicating that buying momentum has evaporated. With the price now stuck below all three major moving averages I remain with the view that more downside is likely. A close above the $1200 level would be needed to even suggest that the bulls are back in command.

Silver offers few opportunities for bulls
Silver is probing the lows seen last week, with a move below $15.80 targeting the March lows of $15.50. An oversold reading on the daily charts means sellers should be careful and wait for bounces on intraday charts. Until we get a move back through $16.20 there are likely to be only slim pickings for bulls.

Brent experiences heavy sell off
Brent crude has already sold off heavily this morning, so bears should wait for an intraday bounce. With the 50-day simple moving average at $63.50 being tested and daily stochastics rolling over and poised to go bearish it looks like the 100-day SMA at $60.63 may be in play sooner than anyone suspected. A bounce needs to hold above the 50-day SMA and then head towards $68.

WTI
One thing is becoming clear at this point – US light crude continues to find the air above $60 high uncongenial. Once again we have fallen back below the $60 mark. While the 14-day exponential moving average at $59.15 is providing some support the real hope for the bulls lies in the still-rising 50-day SMA at $58.23.

A break below here risks a drop to the 100-day SMA at $53.68, but a bounce will need to clear the 200-day SMA at $62.84 to be in with a chance of moving onwards. 

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.