Sellers likely to return despite gold and Brent rebounds
Gold and Brent rebound, yet wider bearish trends point towards a strong possibility that the sellers will come back into play before long.
Gold rebound likely to prove fleeting
Gold has been regaining ground following a sharp decline earlier in the month.
The wider creation of lower highs points towards this current rebound likely being a retracement before we turn lower again. Thus, while we could see some more short-term upside, there is a strong chance that the sellers could come back into play before long. Watch for a break below the most recent swing low (currently $1281) as a signal of impending downside. Otherwise, a break through $1303 would be required to negate the bearish trend in play over the past three months.
Brent rebounds, yet bears look likely to return
Brent saw sharp losses last week, with the price falling into a near two-month low.
Since then, we have seen the buyers start to come back into play to bring us back above the notable $68.72 level. However, given the bearish implications of the break below that level, this looks like a precursor to further downside. Look for potential bearish reversal signals within this current rally, with a break above the $72.84 level required to negate the current bearish picture.
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. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance. Upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
