Gold price drifts into key support, while Brent crude oil price heads higher
Gold starts to show signs of another potential bearish move, while Brent gradually gains ground.
Gold showing signs of impending downturn
Gold is, once again, looking primed for a period of downside, with the recent rally failing to provide momentum to the upside. Instead, we are seeing its price fall back into the $1493-$1496 support zone, which if broken would lead to further downside for gold.
As such, watch for a break below support as a bearish signal, with the recent rebound providing us with a potential area to place stop losses (above $1509). A break through that $1509 level would bring a more bullish picture into play.
Brent looks to regain further ground
Brent has been regaining ground over the past two weeks, with the price retracing the losses seen around the turn of the month. While this does look like a retracement, there is still a good chance of a break through the $61.32 level to bring a rally back towards trendline resistance.
However, even if that does play out, it looks likely that this rally is a short-term phenomenon, with further downside to come. Watch for a break below the prior intraday swing low as a bearish signal, with $58.63 representing that current level to watch.
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