Gold turning lows from $1400, while Brent crude rises off Middle East tensions
Gold is turning lower after a huge rise into $1400, while crude is regaining ground in the face of US-Iran tensions.
Gold starts to retrace after huge gains
Gold has seen a momentous week, with the price breaking through $1375 to bring about a new five-year high. We have since seen a break through the $1400 market for the first time in six years.
Profit taking, however, appears to be in play this morning, with the price moving sharply lower. Watch for a break below the $1386 level to bring about a more bearish short-term view, with the crucial $1375 support level coming into play below there. Ultimately, further upside looks very likely, yet we could move into a short-term retracement phase given the size of this recent breakout. Keep an eye out for the US Federal Reserve (Fed) and US-Iran developments as the drivers of market sentiment.
Brent crude rises through key breakout level amid rising Middle East tensions
Brent rises through key breakout level as the US decided against a retaliatory attack on Iran overnight. The prospect of a further breakdown in relations between the two countries gives markets plenty reasoning to buy oil.
The rise through $63.54 provides us with a bullish breakout signal for the short term, with further upside likely from here. Watch for that level to provide support from here, with gains looking likely if the price remains above $63.54. A decline below that support level would bring about a likely retracement of the $60.91-$64.68 rally.
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