Gold price and Brent crude price diverge, yet bullish outlook dominates

Gold and Brent crude diverge, with gold heading higher after FOMC meeting. However, both markets look set to push higher before long.

Gold heading higher after decline into key support

Gold dropped into the $1481 support level yesterday, following the Federal Reserve (Fed) rate decision. The consolidation seen over much of October has taken us within close proximity to the $1519 resistance zone, yet failed to break through to bring a wider bullish outlook.

On a morning that has already served up a host of US-China related headlines, gold bulls will be hoping to see further signs of weakness in that relationship to push us through $1519. Should that occur, it would likely lead to the exit and breakout from this phase of consolidation. As such, while short-term upside looks likely, the big question is whether we can see a rise through $1519 to bring wider bullish consequences.

Brent crude looking to extend recent retracement

Brent crude has been showing signs of forming a short-term bearish phase, with the price declining below the $60.43 swing low.

A continuation of that breakdown looks likely as we retrace the rally from $58.00. As such, watch for further downside from here, where a break above $61.65 would be required to bring about a more bullish outlook once more. Otherwise, further downside could bring about a bullish opportunity around the 61.8%-76.4% Fibonacci zone ($59.55-$58.94).


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.