Gold and Brent prices rise, yet crude weakness likely to return

Gold and Brent on the rise, but the latter's weakness is expected to come back into play before long.

​Gold breakout points towards further gains to come

Gold failed to break below the crucial $1493 support level on Friday, with its price ultimately breaking higher into a new six-year high. The trend has been overwhelmingly bullish throughout recent months, and the short-term weakness we have been seeing was always likely to be a part of a wider bullish trend.

With its price having broken through the $1535 resistance, it looks like we have left that period of weakness behind, indicating further upside to come. Therefore, while we could see further short-term downside, any such downside would be seen as a retracement of the rally from $1493, unless that prior low is broken.

Brent pauses within recent decline

Brent has been on the slide of late, with its price breaking lower after a failed attempt to break into a high through $61.32. That points towards further downside, although we would need to see the price break $57.47 to bring confirmation of a wider bearish picture coming into play.

To the upside, a break through the $59.65 level would be required to bring about a more bullish picture. ​

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.