Gold price and Brent crude oil price expected to turn lower before long

Gold at risk of a bearish turn, while Brent gains ground in what looks like a precursor to further downside.

Gold turning lower from Fibonacci resistance

Gold has been showing tentative signs of weakness of late, with the break below $1488 on Tuesday potentially paving the way for further downside.

Given the recent gains, this is obviously a risky play. However, with the price finding it difficult to break through the 76.4% Fibonacci retracement ($1522), there is a good chance we will turn lower from here. A break through the $1508 would provide a bearish confirmation signal for that view. Otherwise, a break through the $1535 level would point towards another leg higher for this precious metal.

Brent crude on the rise after recent breakdown

Brent is regaining ground this morning, following on from a sharp decline since Tuesday’s peak of $61.35. The break below $57.73 yesterday points towards a high likeliness of further downside, yet it seems we are destined to see an upward retracement for the time being.

A break through the $59.21 mark would point towards a retracement of the wider decline from $61.32. Given the fact we have seen a break through the 76.4% retracement level of $58.80, such an upward move does seem likely for the near term. However, until that wider $61.32 level is broken, such short-term upside simply looks like a retracement before we turn lower once again.

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.