Gold price rallies while oil moves back to October lows
Gold has benefited from an outbreak of risk aversion, while oil has continued its ongoing fall, heading rapidly back to lows seen four months ago.
Gold on the up thanks to risk aversion
Gold has begun the week with a gap higher, and while it has edged back so far in Monday’s session the overall outlook remains bullish.
Daily stochastics may well provide a bullish crossover today, while moving average convergence/divergence (MACD) is not far behind, suggesting that further gains will take the price on towards $1600. A reversal below $1550 is needed to provide a more bearish short-term view.
WTI heads back to October lows
Having declined sharply since the beginning of the year, the WTI price has continued to fall this morning.
Almost all the Q4 2019 rally has been surrendered, and the price now targets support at $51.13. A rally back to $54.00 would close the overnight gap, but a move back above $56.00 is needed to clear the lower high from Friday and suggest that a move higher is underway.
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.