Gold and Brent crude prices head higher, yet oil rally remains at risk
Gold and Brent crude gain ground, yet it is gold that looks primed for a persistent upward move after recently bottoming out.
Gold back onto a more bullish footing
Gold has been regaining ground over the course of this week, with a huge Federal Reserve (Fed) quantitative easing (QE) package helping boost sentiment around this precious metal. Given that the wider decline failed to break below the $1445 support level, the uptrend remains intact.
With that in mind, the short-term picture is bullish, with the rise through $1585 providing another signal that we are set to see further upside. A bullish view is therefore in play, with a break below $1558 required to negate this outlook.
Brent crude could weaken from trendline resistance
Brent gains have taken us into trendline resistance, raising the chance of a bearish turn today. The wider bearish picture remains in play, with a break through $32.21 required to negate this downtrend.
The tentative move below $29.54 signals a potential downward move in the offing, with another move back below that level providing us with greater confidence of potential impending weakness.
This information has been prepared by IG, a trading name of IG Markets 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.
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
Live prices on most popular markets