Gold price and Brent crude price reach key trendlines
Gold and Brent trade around crucial trendlines, with recent gains coming into question.
Gold rallies into trendline resistance
Gold has surged back into trendline resistance over the course of the week, with risk-off sentiment driving up demand for havens. This brings us into a crucial area, where the ability to break through trendline and $1745 resistance will be key in dictating whether we can push onwards into a major bullish breakout phase.
Given the relationship between US 10-year yields and gold, much will likely be pinned on the potential for yield curve control from the US Federal Reserve (Fed). Should that be implemented, gold could be a big winner. They are holding off, for now, and questions could be asked as to whether there is enough momentum to drive us through this resistance zone quite yet. As such, this area of resistance is going to be key today.
Brent crude falls into key support zone
Brent has declined back into the $39.95-$40.28 support zone this morning, following sharp gains yesterday. The build in US inventories has not done Brent any favours, with continued builds in stockpiles highlighting the continued oversupply that exists.
Nevertheless, from a technical perspective, we are at a key crossroad for Brent. A break below trendline and horizontal support would point towards a potential capitulation for crude as we unravel some of the gains seen over recent months. However, the uptrend does remain in play, and another leg higher is still a possibility if the price remains above this key support zone.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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