The information 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 and as such is considered to be a marketing communication.
Gold could find support at $1195
The yellow metal has returned to the depths witnessed last week, leaving the downtrend intact for the time being. After a brief rise the daily relative strength index is back in oversold territory, pointing the way to further declines. The $1200 mark will likely be a major line in the sand, but real support will probably be found around $1195. Any upward move will still have to breach the 20-day moving average at $1233.
The hourly chart shows buyers have come back in around $1205, but resistance is likely around $1208 and then $1212.
Silver could drop to $16.75
The $17.30 mark is a potentially big support level stretching back into 2010, with a weekly chart suggesting a breach here leaving the way clear to $16.75. Even an upward rally in the downtrend would only see silver's price move back to $18.20, and would be viewed more as a selling opportunity than a definite turnaround moment.
Brent eyes 20-DMA
The $96.70 level is holding as support again, and with the daily RSI moving upwards we may be in for another attempt to clear the 20-DMA. This would take Brent right back to the downtrend from the June highs, and any failure to breach this would then open the way to $96. The 200-hour has been breached today, but $98 should prove to be resistance, and any drop lower still targets $96.50.
WTI could target $91.20
The week-long rally in this commodity has carried us back close to $95, where resistance was last seen. Dips back to the 50-hour MA have been treated as buying opportunities, so a drop back to $93.70 would not end the upward move. A close through the 200-hour MA at $92.39 targets $91.20, and then the 22 September lows around $90.50.