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.
USD rebound caps gold’s gains
Gold prices are trading at $1,213, down 0.33% on the day. This is most likely a short-term pull-back following a sharp move higher that resulted in an overbought reading on Tuesday. However, the bullish trend remains, receiving support from its 50-, 100- and 200-day moving averages.
It is likely the pullback will test the intermediate downside support which resides at the 50-DMA, currently trading at $1,208. Should this downside target hold then a retest of $1,215 is likely.
Silver sees sharp correction
Silver is currently trading at $16.31 after touching a high of $16.71 yesterday. A bullish trend in both global stocks and the US dollar is likely to be the catalyst behind this move, with investor sentiment rebounding in favour of a risk-off bias.
The move lower has reached intermediate downside support at $16.29. If this support holds then we could see a retest of topside resistance at $16.38.
Brent prices rally with bullish stock sentiment
In line with a more positive view toward global risk sentiment, Brent prices picked up, pushing to a daily high of $51.70 after posting a multi-year low of $49.66 on Tuesday. Its relative strength index, however, remains in contractionary territory, currently trading at 45 and could well be indicative of a possible downside correction. Intermediate topside support is placed at $52.26 – which, should prices fail to break above, could see a retest of downside resistance currently placed at $49.16.
WTI prices edge higher
WTI prices have ticked higher by 0.47%, currently trading at $48.17 having touched a multi-year low of $46.82. The sharp move to the downside registered a deep oversold reading of 16.8, and has subsequently resulted in a move up to 34.4. Despite seeing prices move higher, the current strength of the move remains in contractionary territory.
The low of $46.82 is in line with intermediate downside support and is likely to be retested should the current rebound hold at topside resistance, currently trading at $48.92.