Gold price and Brent crude price losses ease amid potential recovery

Gold and Brent crude losses ease, with a recovery likely to come into play before long.

Gold consolidates after rally into trendline resistance

Gold has been consolidating after a deep 76.4% retracement rally on Wednesday.

The wider picture remains bullish for gold, and thus the declines we are seeing since the 8 January peak are likely to be a retracement before we push higher again. With that in mind, a bullish outlook is likely to come back into play soon enough. However, with the recent wider pullback yet to even reach the 50% level, there is a strong chance of another leg lower from here, with trendline resistance providing a potential spark for another bearish turn. As such, a bearish short-term picture remains in play unless we see a break through $1563 resistance.

Brent starts to tentatively regain ground after recent losses

Brent has been declining into the support zone between the 61.8% and 76.4% Fibonacci support levels.

Alongside an ascending trendline, this looks like a prime area for the market to turn higher from. With that in mind, the rally we have seen overnight looks like a potential tentative signal of impending upside. Watch for a break through $64.65 to provide greater confidence that this rebound will come to pass.

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.