Gold price and Brent crude price losses ease amid potential recovery
Gold and Brent crude losses ease, with a recovery likely to come into play before long.
Gold consolidates after rally into trendline resistance
Gold has been consolidating after a deep 76.4% retracement rally on Wednesday. The wider picture remains bullish for gold, and thus the declines we are seeing since the 8 January peak are likely to be a retracement before we push higher again.
With that in mind, a bullish outlook is likely to come back into play soon enough. However, with the recent wider pullback yet to even reach the 50% level, there is a strong chance of another leg lower from here, with trendline resistance providing a potential spark for another bearish turn. As such, a bearish short-term picture remains in play unless we see a break through $1563 resistance.
Brent crude starts to tentatively regain ground after recent losses
Brent has been declining into the support zone between the 61.8% and 76.4% Fibonacci support levels.
Alongside an ascending trendline, this looks like a prime area for the market to turn higher from. With that in mind, the rally we have seen overnight looks like a potential tentative signal of impending upside. Watch for a break through $64.65 to provide greater confidence that this rebound will come to pass.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.