Gold price and Brent crude oil price show signs of potential upside

Gold and Brent show signs of a potential recovery, yet could such a move be fleeting?

Gold declines continue wider bearish trend

Gold has been turning lower after a rally into the 76.4% Fibonacci resistance level on Thursday. That coincided with the bottom for European and US markets amid recent selling.

However, just as those markets start to look at risk, we are seeing gold consolidate, with the stochastic pointing towards a rolling over in momentum. Watch for the stochastic to rise through the 20-mark to signal potential impending upside, with any such gains potentially providing us with a retracement of this recent sell-off. We would need to see $1519 broken to bring about a more bullish view for the medium term.

Brent attempting to regain ground after recent declines

Brent crude has seen some upside come into play following a decline into the crucial $55.80 and $56.06 support zones.

While the price has been gradually gaining ground, we are seeing some of that traction ease this morning with a somewhat tame rebound in early hours. With the price starting to turn lower, a break below the $57.59 would start to bring about a more bearish picture once more. Until then, the question is whether we can continue to regain ground following a period of sharp 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.