Brent crude and gold weakness could provide buying opportunity
Gold and Brent crude slump, yet wider bullish trend points towards likely resurgence before long.
Gold heads lower once again
Gold has been on the slide since Donald Trump calmed fears over a potential war with Iran. Instead we are seeing markets move their focus to more optimistic topics such as the US-China trade deal signing on Wednesday.
Given the size of the recent rally, it makes sense to expect further downside from here. As such, a bearish outlook is in play, with a break below $1540 providing greater confidence of such a bearish move coming into play. However, the wider outlook remains bullish and thus any short-term downside looks like a retracement and precursor to further gains unless we break below $1445.
Brent slump slows at Fibonacci support
Brent crude saw sharp losses off the back of a sharp spike in response to the US-Iran tensions.
Despite this decline, the wider trend remains bullish until we see a break below $6020. Given the recent respect of the $64.35 support level (61.8% Fibonacci), it makes sense to watch out for a potential move higher from here. Should we break this level, watch out for support at an ascending trendline and the 76.4% Fibonacci retracement at $62.76.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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.
Speculate on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- 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
Live prices on most popular markets