Gold price and Brent crude price diverge amid safe-haven flows

Gold and Brent divergence comes back into play, with coronavirus fears driving demand for gold and selling for crude oil.

Gold heading higher after recent retracement

Gold is heading higher once more, following a short-term retracement into the 76.4% Fibonacci support level ($1563).

This points towards a continuation of the uptrend in play over the past fortnight, with a break through the $1586 level providing a bullish continuation signal. A bullish outlook is therefore in play unless we break below the $1556 low.

Brent crude drops back into lows of the week

Brent has also turned lower overnight, with the price heading back into Monday's low of $57.82.

A break below this level would point towards further short-term downside from here. From a wider perspective, we remain within a potential retracement unless we break below the $56.08 low. Nevertheless, the short-term picture will be dictated by the ability to break and hold below this level, with further downside looking likely if that occurs.

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.