Gold price rallies while oil moves back to October lows

Gold has benefited from an outbreak of risk aversion, while oil has continued its ongoing fall, heading rapidly back to lows seen four months ago.

Gold on the up thanks to risk aversion

Gold has begun the week with a gap higher, and while it has edged back so far in Monday’s session the overall outlook remains bullish.

Daily stochastics may well provide a bullish crossover today, while moving average convergence/divergence (MACD) is not far behind, suggesting that further gains will take the price on towards $1600. A reversal below $1550 is needed to provide a more bearish short-term view.

WTI heads back to October lows

Having declined sharply since the beginning of the year, the WTI price has continued to fall this morning.

Almost all the Q4 2019 rally has been surrendered, and the price now targets support at $51.13. A rally back to $54.00 would close the overnight gap, but a move back above $56.00 is needed to clear the lower high from Friday and suggest that a move higher is underway.

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.