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.

Levels to watch: gold, silver and crude

A strong US jobless claims number has bolstered hopes of a tightening in US monetary policy, and this has weighed on safe-haven assets.

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.
Silver bars
Source: Bloomberg

Gold suffers losses

Gold prices are trading at $1,264, up 0.19% on the day following a sharp downside correction on Thursday that saw prices come off its recent high of $1,297 to an overnight low of $1,252. The sharp move lower posted an oversold reading of 20 on its relative strength index (RSI) indicator, which has since resulted in a bounce higher to its current level.

Downside support is likely to be seen at $1,260, and if held is likely to see a move higher to $1,274. However, should downside support be broken then a retest of $1,251 may be seen.

Silver demand begins to wane

Silver is currently trading at $17.02, up 0.17% after suffering a substantial drop during Thursday’s trading session. This saw US jobless claims fall to a multi-year low, bolstering speculation of an impending tightening of US monetary policy, thus seeing a decline in demand for safe-haven assets such as precious metals.

Silver prices touched downside support at $16.74, which has held and seen prices move higher with further upside targets placed at $17.11. If this taken out then a move toward its 50-hour moving average, at $17.50 is possible. Should support fail to hold then a retest of $16.74 is likely to be seen.

Brent aiming for a breakout

Brent prices are trading at $49.71, adding 1.30% following a multi-year drop in the level of US jobless claims, which is indicative of an improving economy and could improve demand for oil.

Price action has pushed through a previous key level of resistance at $49.16, and if this becomes support then a move higher to $50.06 could be seen. However, a retest of $48.19 could come back into play if downside support fails to hold.

WTI breaks key resistance

WTI prices are currently trading at $45.09 having touched an overnight low of $43.58. Price action has pushed WTI above its 50-hour MA of $45.01 which had previously been a key level of topside resistance, and if held could support prices higher to its 100-hour MA of $45.91 – a move supported by its RSI reading of 56.9. The next clear level of support is not seen until $44.35 should downside support fail to hold. 

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.