Gold price and Brent crude price diverge, yet bullish outlook dominates

Gold and Brent crude diverge, with gold heading higher after FOMC meeting. However, both markets look set to push higher before long.

Gold heading higher after decline into key support

Gold dropped into the $1481 support level yesterday, following the Federal Reserve (Fed) rate decision. The consolidation seen over much of October has taken us within close proximity to the $1519 resistance zone, yet failed to break through to bring a wider bullish outlook.

On a morning that has already served up a host of US-China related headlines, gold bulls will be hoping to see further signs of weakness in that relationship to push us through $1519. Should that occur, it would likely lead to the exit and breakout from this phase of consolidation. As such, while short-term upside looks likely, the big question is whether we can see a rise through $1519 to bring wider bullish consequences.

Brent crude looking to extend recent retracement

Brent crude has been showing signs of forming a short-term bearish phase, with the price declining below the $60.43 swing low.

A continuation of that breakdown looks likely as we retrace the rally from $58.00. As such, watch for further downside from here, where a break above $61.65 would be required to bring about a more bullish outlook once more. Otherwise, further downside could bring about a bullish opportunity around the 61.8%-76.4% Fibonacci zone ($59.55-$58.94).

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.