Gold price and Brent price decline as sentiment improves

Gold and Brent decline further, with risk-on sentiment coming despite expectations of weaker Chinese demand.

​Gold consolidating, yet further declines look likely

Gold has been on the slide as traders move out of haven assets and into risk. The consolidation we are currently seeing provides us with a breather off the back of the sharp declines seen on Monday and Tuesday.

However, the break below $1563 provides us with a bearish signal that we will see further downside to come. As such, this looks like a consolidation phase, with a break back below $1546 providing another bearish signal. Alternatively, short-term upside would be deemed as a retracement before we turn lower again. A break through $1590 would be needed to negate this bearish short-term outlook.

Brent crude rallies into trendline resistance

Brent crude has managed to regain ground following a period of weakness taking us into a 13-month low on Tuesday.

This downtrend remains in play unless we see a break through $59.87, with another leg lower from this trendline looking likely from here. Watch out for a trendline break to signal further short-term upside, yet we have seen precious few signs that this is the end of the recent selloff. Keep an eye out for Organization of the Petroleum Exporting Countries (OPEC) announcements as they attempt to arrest the declines.

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
liveprices.javascriptrequired
liveprices.javascriptrequired

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

liveprices.javascriptrequired

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.