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 continues its descent
Arguably gold is still heading lower, even if the journey is a choppy one. The metal finds itself stuck below the 50-day simple moving average (SMA) at $1193, while stochastics and the relative strength index (RSI) continue to decline. Support still lies around $1180, while a breakout will likely be constrained by $1210 and then the 100-day SMA at $1212.
Silver outlook still bearish
Having spent two days holding above $15.70 the bottom may be in for silver this time, if the price can rally back through $15.90, a turn higher in the RSI and stochastics would signal that a turnaround is in place. For the moment however the picture still leans to the bearish side of things, with a move back below $15.70 suggesting that the March low is still the likely destination.
More upside expected for Brent
After breaking higher yesterday and moving through the crucial $65 level, it looks like there is more to come fro Brent. A fresh target would now be the 200-day SMA at $75.80, although an overbought reading on the RSI is not too far away and should make buyers more assiduous about waiting for dips (ideally using indicators such as the RSI/stochastics on an hourly chart). A close back below $65 would negate the outlook, and put the emphasis back on the $61.80 region.
WTI remains below $58.70
US crude is still stuck below $58.70, so this is the level to watch. A close above here means that it is likely to follow its cousin Brent higher, but a failure to hold suggests the bottom end of this week’s range ($55.60) will be tested. A break below here would open the way to the 100-day SMA at $51.40.