Gold price remains under pressure while Brent crude oil and platinum rally
The outlook on gold is more subdued than on crude oil and platinum, both of which are rallying.
Gold slides towards 200-day SMA
Gold’s slip from its mid-April high at $1,998 is ongoing amid demand woes with it getting ever closer to the December-to-May uptrend line and 200-day simple moving average (SMA) at $1,839 to $1,835.
In this vicinity the gold price is likely to stabilise, at least in the short-term. Should this not be the case, a fall towards the next lower late December-to-January lows at $1,790 to $1,781 may unfold. Further down lies the December low at $1,754.
While the one-month downtrend line at $1,894 and, more importantly, the late April high at $1,919, cap, the recent downtrend remains intact.
Further up meanders the 55-day SMA at $1,932.
Brent nears downtrend line as EU plans to ban Russian crude oil imports
The price of Brent crude oil continues to be underpinned by robust global demand and today’s European Union (EU) 27-member state meeting, in which a ban on Russian crude oil over the next six months will be discussed, could potentially also be approved.
This pushed the price of Brent to $109.89 last week, a level which is once more being targeted, together with the 21 April high at $109.45, now that the two-month downtrend line at $108.10 has been breached.
If the $109.45 to $109.89 resistance zone were to be bettered, the mid-April high at $114.00 would be back in view. Above this level strong resistance can be found at the 3, 10 and 24 March highs at $116.48 to $120.48.
Slips should find support along the 55-day SMA at $105.94 and at this week’s low at $102.91.
Further down sits last week’s low at $99.28.
Platinum is breaking through its downtrend line
Platinum’s 23% drop from its early March $1,183 per ounce peak as a result of the Russian invasion of Ukraine, seems to have ended at last week’s $906 low from where a swift recovery rally has taken shape with the two-month downtrend line at $966 currently being breached.
The mid-March low at $984 is within reach, a rise above which would engage the 200- and 55-day SMAs, as well as the mid-April high at $1,006 to $1,025.
Minor support can be found between the March and early April lows and the 29 April high at $959 to $945. Below this area major support continues to be seen at the September and December 2021 lows as well as last week’s low at $906 to $891.
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.
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