Gold price and Brent crude oil price ease back around trendline support

Gold and Brent ease back, as trendline support comes into play.

​Gold tumbles as risks fade

Gold broke through trendline support yesterday, as fading impeachment fears were accompanied by US President Donald Trump comments that alluded to an impending deal with China.

We have seen the price moderately gain ground overnight, yet with the price turning lower it seems there could be further downside to come yet. A break below $1501 would point towards further short-term losses, yet there is also a case to be had that we are looking at a retracement of the rally from $1483 which points towards the bulls coming back into play before long. As such, while short-term downside still looks likely, watch for support to come in before long to build on the bullish break through $1524 seen on Monday.

Brent crude falling back towards trendline support

Brent crude has been on the slide since the Saudi Arabia attacks, with the price having now dropped back into the peak seen on that Friday close.

Yesterday we saw the price respect a confluence of tendline, gap and the 200-period simple moving average (SMA) support, with the price subsequently rebounding off these levels. However, with the price turning lower again, there is a chance we will see another decline into this confluence of support today. As such, the ability or inability to break through this area of support will be key in determining whether this recent bearish price action will continue or not.

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.