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 Bank S.A. 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.
Uninspired gold prices remain rangebound
Gold prices continue to be trapped in a range, currently trading at $1,197, on Monday after seeing a short-term spike up to $1,203 in overnight markets, which still failed to post a close outside the long-standing trading range. With minimal economic data releases scheduled for Monday, it is likely that consolidation will remain the trend.
Intermediate support for gold is likely to be seen at $1,196, with topside resistance at $1,200.
Silver higher on weakening volumes
Declining daily traded ranges in silver have resulted in price action moving higher in a shallow, choppy, trend retesting the $16.15 level which has held despite three attempts to rally through over the previous trading week.
The slowdown in volumes coupled with a move higher leaves the trend susceptible for a sharp correction, so daily support/resistance ranges have been tightened with downside support possible at $16.02, with a close above $16.15 needed to in order to signal a possible bullish move to $16.29.
Brent approaching key level
Brent prices have continued to rally off its recent lower high at $59.06, currently trading at $61.91, with upside targets of $63.53 – a level which has held on three separate occasions over the past week of trading. A close above will need to be seen in order to confirm a possible trend reversal that could then see a retest of $65.56. Should the $63.53 level hold then a sharp correction could be seen, as has been the case three times before, and could bring $59.74 back into play.
WTI in search of support
Price action in WTI is a similar story to Brent, with a break above $59.18 needed in order to improve bullish sentiment, which given a reading of 55.4 in WTI’s RSI could see a potential move higher over the near term. A close above the aforementioned level could result in a retest of $59.89. Downside targets, however, remain at $56.64.