Gold price risks fall while oil price girds itself for a rally
As risk appetite revives, gold is beginning to look vulnerable, while oil might be readying itself to rally.
Gold at risk of turn lower
The rally this week has been capped at $1480 for gold, with gains petering out below the 50 and 100-day simple moving averages (SMAs), with the former crossing below the latter once again.
The price is rebounding from the low around $1472, but if any rally today runs out of steam as the others this week, creating a lower high below trendline resistance from the 4 December high, then a bearish view will continue to evolve, reinforced by potential bearish crossovers in daily stochastics and moving average convergence divergence (MACD).
WTI braces for a new move higher
Gains have stalled around $58.50 all week for WTI, but with the recovery from $55.00 now in place, the push above this key resistance now needs to begin.
Having stabilised around $58.00 overnight, the price may now develop enough momentum to push above $59.00. The oversold reading in hourly stochastics could provide the entry point for such a trade, with a stop below $58.00 providing a strong risk-reward ratio.
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.