CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Brent pauses ascent as gold and natural gas prices little changed

The outlook on Brent crude oil, gold and natural gas is little changed as US markets return following Independence Day.

​Gold little changed

Gold traded in a tiny range yesterday as the US benefitted from a prolonged weekend due to Independence Day.

The precious metal is little changed today, having formed a Hammer formation on the daily candlestick chart last Friday. Such a pattern is usually followed by a bullish reversal.

A rise above yesterday’s high at $1,814 would engage the April-to-July downtrend line at $1,829 and also the 29 June high at $1,833.

Slips may find support around the minor psychological $1,800 mark today. Below it more significant support can be made out between the May and current July lows at $1,787 to $1,785.

Brent crude pauses advance on supply woes

Brent crude oil reached its one-month resistance line at $113.55, and briefly rose to $113.88 on the back of a strike by Norwegian offshore workers. The strike begins on Tuesday and is expected to cut around 130,000 barrels of the country’s daily production, before coming off again on concerns a recession will eventually lower energy demand.

While last week’s high at $116.16 isn’t bettered, sideways trading between this level and the June low at $104.92 remains to be seen.

Minor support below the 55-day simple moving average (SMA) at $111.85 can be found at the $112.22 20 June low and more important support at last Friday’s $107.76 low.

Above $116.16 sits the 17 June high at $119.31.

Natural gas slips back towards its 200-day SMA

Natural gas futures plunged by around 15% last week to a three-month low at $5.37.

This followed a report by the US Energy Information Administration (EIA) on Thursday that inventory for the week ending June 24 rose by 82 billion cubic feet, sparking fears of an oversupplied market which led to natural gas futures posting their worst month in more than three years.

Since then the price of natural gas managed to heave itself back above the 200-day SMA at $5.65, around which it has held over the past three trading days. This is as Norwegian offshore workers begin to strike on Tuesday, reducing supplies, and as the International Energy Agency (IEA) in its latest quarterly market report said it expects gas usage to slip 0.5% this year as reduced economic activity in Asia and a sharp fall in European gas demand overshadows more buoyant markets in the US.

Key support remains to be seen between the November 2021 and January 2022 highs at $5.51 to $5.43 and last week’s low at $5.37. If giving way, the early March high at $5.19 would be in the frame.

Resistance sits at the 24 June low at $6.06.


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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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.