Gold price and Brent crude oil price show signs of potential upside

Gold and Brent show signs of a potential recovery, yet could such a move be fleeting?

Gold declines continue wider bearish trend

Gold has been turning lower after a rally into the 76.4% Fibonacci resistance level on Thursday. That coincided with the bottom for European and US markets amid recent selling.

However, just as those markets start to look at risk, we are seeing gold consolidate, with the stochastic pointing towards a rolling over in momentum. Watch for the stochastic to rise through the 20-mark to signal potential impending upside, with any such gains potentially providing us with a retracement of this recent sell-off. We would need to see $1519 broken to bring about a more bullish view for the medium term.

Brent attempting to regain ground after recent declines

Brent crude has seen some upside come into play following a decline into the crucial $55.80 and $56.06 support zones.

While the price has been gradually gaining ground, we are seeing some of that traction ease this morning with a somewhat tame rebound in early hours. With the price starting to turn lower, a break below the $57.59 would start to bring about a more bearish picture once more. Until then, the question is whether we can continue to regain ground following a period of sharp declines.

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.