Gold and Brent crude oil prices look set for another bearish turn
Gold and brent look set for further weakness, with recent rebounds seemingly a precursor to another bout of selling.
Gold rally unlikely to last following recent breakdown
Gold has been showing signs of weakness this week, with the price reversing lower since hitting the crucial $1347 swing high.
A break below the $1330 and $1327 levels points towards a potential reversal coming into shape after respecting that $1347 region. With the price currently moving higher, there is a good chance we are looking at a retracement. The 61.8%-76.4% Fibonacci zone of resistance is going to be key as a potential area for shorts. Only with a break through the $1348 level would we see a bullish outlook return.
Brent crude breaks lower as bearish picture returns
Brent has managed to break through the $61.47-$61.67 support zone overnight, to seemingly put to bed the idea of a recovery.
The rebound seen through the back end of last week seems to be over now, and with the short-term head-and-shoulders pattern being completed, it looks like we will see further downside to come. A bearish picture is now back in play, with a break below $59.95 providing us with the next bearish signal.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.