Gold and Brent crude oil price gains could be fleeting

Gold and Brent regain ground, yet the outlook remains uncertain given coronavirus volatility.

Gold rallies towards resistance

Gold has been experiencing a somewhat mixed time of late, with ongoing virus fears counteracted by a wider desire to be long equities. Nevertheless, the risk-off move seen overnight has helped drive gold towards the $1577 level, where a break through there would provide a continuation of the recent recovery.

The $1577-$1580 resistance zone is going to be important going forward, with a failure to break through providing a more bearish outlook. However, we are in a period of significant uncertainty, and ultimately, we need to see a break through either $1590 or $1547 to signal a potential breakout from this consolidation phase.

Brent crude starts to weaken from key resistance level

Brent has managed to gain a significant amount of ground over the course of the week, with the price moving back towards the crucial $56.60 level. A break through there would point towards further upside coming into play.

However, we are starting to see some weakness emerge, with the stochastic also providing a clue that momentum is shifting to the downside. Thus, we are likely to see some weakness today, with the downtrend remaining intact unless we see a break through that $56.60 resistance level. Until then, further downside remains the default scenario.

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.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.