Gold price likely to rise again, while Brent price waits for OPEC action for direction

Gold looks primed for another surge higher, while Brent drifts lower ahead of the OPEC production decision.

Gold pennant points towards impending surge

Gold has come back into favour, as global easing from central banks brought home one of the favoured reasons for holding gold; to protect yourself from currency devaluation.

With the price currently tightening into the apex of a pennant, it is likely we will soon see a spike in volatility once again. Given the sharp rise into this pattern, it is likely that the next move will be a continuation of that bullish sentiment. With that in mind, a bullish outlook is in play, with a break below the $1632 level required to weaken that bullish sentiment.

Brent crude eases back as markets look for OPEC+ production cut

Brent crude is expected to see significant volatility today, with the Organisation of the Petroleum Exporting Countries (OPEC) hoping to agree a deal with Russia to enact a sharp cut in production to counteract the recent coronavirus-led slide in oil prices.

The recent gains have come in anticipation of this move from OPEC, and thus there will be a big focus on exactly how much Saudi Arabia can push for as they seek to raise prices. As things stand, we are at a crossroads which will be resolved by OPEC. An announcement that appeases markets could see this recent rise form a short-term base, with a rise through $53.01 pointing towards a continuation of these recent gains and a move up through $53.84. However, a failure to enact a sufficient cut could lead to a decline back below $48.93, which would provide a bearish continuation signal as we resume the downtrend of last week.


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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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.