​Gold prices hits resistance, while WTI price grinds higher

Gold shows signs of potential weakness at trendline resistance, while US crude continues to grind higher within consolidation phase.

​Gold rallies into trendline resistance

Gold has been on the rise after the recent retracement into the 76.4% Fibonacci retracement level at $1692. That rise could start to come under pressure from here though, with trendline resistance bringing some early selling pressure. The stochastic is also turning lower once more, with a break below the 80 level looking highly likely.

The past four occasions we have seen such a breakdown out of overbought territory, the price of gold has seen sharp losses. The wider outlook still remains bullish, yet it does look likely we will see a move lower over the short term. We would need to see a break through $1723 to signal an end to this recent period of consolidation.

WTI consolidation continues as we await breakout

WTI has been grinding higher over the past week, with markets keeping a keen eye out for whether we see a sharp decline in the lead up to Monday's June contract-end. With crude inventories falling yesterday, markets have seen some sign of hope that we are reaching a point of equilibrium given production cuts and rising demand.

However, with plenty of oil sloshing around at sea and on, with oversupply still an issue. Ultimately, we need to see a break through either $27.39 or $23.91 to bring a wider bias into play. In the meantime, this short-term ascending channel looks set to continue.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Trade 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

1In the case of all DFBs, there is a fixed expiry at some point in the future.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.