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 target $1160
Having fallen below $1180, gold is now struggling to rally off the lows, but on both the hourly and four-hourly charts any bounce is likely to lead to further selling.
Daily stochastics remain firmly bearish, and I continue to expect a rising dollar to hobble strength in precious metals. Downside targets lie around $1160, while any rally needs to clear the 50-day simple moving average at $1190.
Traders anticipate oversold bounce
Here too matters are shaping up nicely for an oversold bounce that will allow traders to sell into strength. Gains are likely to be capped by the $16 level, and a turn lower in hourly stochastics would provide a handy entry point.
Downside targets are to be found near $15.50 in the near-term, with a further target towards $14.50 for silver.
Brent capped at $64.90
Although capped by the 50-day SMA so far around $64.90, the price is also repeating its trick of shying away from the $65 level. Any moves to the downside for Brent will likely be halted at the key $62 support level.
WTI could drop to $59.30
The $61.50 mark is once again acting as resistance for WTI, although the nearness of the 200-day SMA at $61.70 will have something to do with it as well.
If we continue to drop back then downside targets lie around $59.70 and then $59.30.