Gold price and Brent price decline as sentiment improves

Gold and Brent decline further, with risk-on sentiment coming despite expectations of weaker Chinese demand.

​Gold consolidating, yet further declines look likely

Gold has been on the slide as traders move out of haven assets and into risk. The consolidation we are currently seeing provides us with a breather off the back of the sharp declines seen on Monday and Tuesday.

However, the break below $1563 provides us with a bearish signal that we will see further downside to come. As such, this looks like a consolidation phase, with a break back below $1546 providing another bearish signal. Alternatively, short-term upside would be deemed as a retracement before we turn lower again. A break through $1590 would be needed to negate this bearish short-term outlook.

Brent crude rallies into trendline resistance

Brent crude has managed to regain ground following a period of weakness taking us into a 13-month low on Tuesday.

This downtrend remains in play unless we see a break through $59.87, with another leg lower from this trendline looking likely from here. Watch out for a trendline break to signal further short-term upside, yet we have seen precious few signs that this is the end of the recent selloff. Keep an eye out for Organization of the Petroleum Exporting Countries (OPEC) announcements as they attempt to arrest the declines.

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

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

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.