Gold and Brent prices rise, yet crude weakness likely to return

Gold and Brent on the rise, but the latter's weakness is expected to come back into play before long.

​Gold breakout points towards further gains to come

Gold failed to break below the crucial $1493 support level on Friday, with its price ultimately breaking higher into a new six-year high. The trend has been overwhelmingly bullish throughout recent months, and the short-term weakness we have been seeing was always likely to be a part of a wider bullish trend.

With its price having broken through the $1535 resistance, it looks like we have left that period of weakness behind, indicating further upside to come. Therefore, while we could see further short-term downside, any such downside would be seen as a retracement of the rally from $1493, unless that prior low is broken.

Brent pauses within recent decline

Brent has been on the slide of late, with its price breaking lower after a failed attempt to break into a high through $61.32. That points towards further downside, although we would need to see the price break $57.47 to bring confirmation of a wider bearish picture coming into play.

To the upside, a break through the $59.65 level would be required to bring about a more bullish picture. ​

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.