Gold price and Brent crude oil price expected to diverge

Gold and Brent crude look set to diverge as bullish signal in Brent is coupled with bearish gold expectations.

​Gold rallies into resistance and starts to roll over

Gold managed to rally back into the Tuesday high of $1498 yesterday, coming off the back of a failed attempt to break into the $1474 low. That could point towards some form of weakness coming into play, yet there is also a good chance that this is simply a precursor to further downside.

With the price turning lower this morning, watch out for a break below $1483 to bring about a bearish confirmation signal. Until then, there is a chance that we could continue the bullish intraday pressure seen over the past few days. A break through $1503 would be required to bring about a more bullish outlook.

Gold price chart Source: ProRealTime

Gold price chart Source: ProRealTime

Brent showing tentative signs of impending upside

Brent crude managed to rise through the $59.51 resistance level yesterday, bringing about a bullish signal following a period of consolidation around the 61.8% Fibonacci retracement.

Therefore, the gradual uptrend seen throughout October looks likely to persist before long, with a strong chance we will see a rise back towards the $60.53 peak from last Friday. A break below $58.56 would negate this bullish short-term outlook. ​

Brent crude Source: ProRealTime

Brent crude Source: ProRealTime


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.

Speculate on commodities

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

1In the case of all DFBs, there is a fixed expiry at some point in the future.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Change
Sell
Buy
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.