Brent crude price and gold price declines could be short-lived

Gold and Brent crude weakness persists, yet wider uptrends raise questions over longevity of this sell-off.

Gold continues short-term pullback

Gold has been on the slide since topping out at $1611 last week. With confidence returning to the markets, the price of gold is coming under pressure.

However, with a wider uptrend in place for the past 17 months, it is likely that we will see the bulls come back into the fold before long. Although, with this pullback still not even at the 50% Fibonacci level, it is likely we will see further downside to come, with a break through $1563 required to negate this bearish short-term outlook.

Brent falls into trendline support

Brent crude has also been on the slide, with the price moving into trendline support after an almighty climbdown from $71.06.

However, much like gold, the wider uptrend remains intact for this market, with a decline below $60.20 required to bring about a more confident bearish outlook. Until then, watch out for the bulls to potentially come back into play around this trendline support or the 76.4% Fibonacci level ($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

  • Forex
  • Shares
  • Indices

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.