Gold and Brent crude prices head higher, yet oil rally remains at risk

Gold and Brent crude gain ground, yet it is gold that looks primed for a persistent upward move after recently bottoming out.

Gold back onto a more bullish footing

Gold has been regaining ground over the course of this week, with a huge Federal Reserve (Fed) quantitative easing (QE) package helping boost sentiment around this precious metal. Given that the wider decline failed to break below the $1445 support level, the uptrend remains intact.

With that in mind, the short-term picture is bullish, with the rise through $1585 providing another signal that we are set to see further upside. A bullish view is therefore in play, with a break below $1558 required to negate this outlook.

Brent crude could weaken from trendline resistance

Brent gains have taken us into trendline resistance, raising the chance of a bearish turn today. The wider bearish picture remains in play, with a break through $32.21 required to negate this downtrend.

The tentative move below $29.54 signals a potential downward move in the offing, with another move back below that level providing us with greater confidence of potential impending weakness.

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.