Gold price rallies but oil price nosedives
Oil prices have slumped to multi-year lows as a price war breaks out between Saudi Arabia and Russia. This dramatic news has, unsurprisingly, boosted gold once more.
Gold boosted by safe haven flow
The climb towards $1700 continues for gold, while the price hit this level overnight it has not held its ground.
Further gains above $1700 target $1780 and then $1924 in the longer term. The price has found support at $1660, as it did on Friday, providing a support level, with $1640 below this as another area of possible support.
WTI plunges to new depths
WTI's cataclysmic gap down will make it hard to assess the next few hours, let alone the next few days, in terms of price action. Such high volatility will lead to continued wild swings, and it will take time for new levels to emerge.
The price appears determined to hold above 2016’s lows of $27.40, so for now we have a downside target to watch. One small bullish view might emerge if the price can begin to clamber above $33.40 and the lower bound of the overnight gap.
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.