Gold and Brent crude prices regain ground overnight

Gold and Brent crude regain ground overnight, yet will it be enough to lift sentiment after yesterday’s declines?

Gold manages to break higher from recent consolidation

Gold has been tightening within a symmetrical triangle formation over the past 24 hours, with the price rising through trendline and $1724 resistance. That move has been relatively fleeting, yet it does point towards a likely continuation of the wider bullish trend. A persistent move through $1724 would solidify that bullish expectation for the day.

However, it is worthwhile noting that yesterday's declines occurred alongside a bearish move for indices. As such, we find ourselves in a curious situation where gold traders are more confident being bullish when stocks are on the rise. Should gold decline as stocks turn south, a break below the $1709 level would point towards a period of downside for gold.

Brent crude finds support at 61.8% Fibonacci support

Brent declines took us into the 61.8% Fibonacci support level yesterday, with the overnight session bringing some respite to those sharp losses. Unfortunately, we are back on a bearish pathway this morning, with the $29.00 lows back in view.

A break back below yesterday's low would signal a continuation of this current period of weakness, yet it is justified to expect some form of stability above the previous low of $24.75 given that we have seen a significant chunk of global production taken off the market since those lows. As such, the big question is whether we are going to resect these Fibonacci levels at $29.39 and $27.62, or else resume the wider downtrend. Should we hold up at Fibonacci support, it could be a sign that the dynamic is starting to shift somewhat as a gradual reopening of some countries helps lift sentiment. Otherwise, if we break below Fibonacci support, it could point towards further losses in anticipation of a long hard road of oversupply.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Speculate 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.

See opportunity on a commodity?

Don’t miss your chance. Try a risk-free trade in your demo account, and find out whether your hunch could have paid off.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a commodity?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Analyse and deal seamlessly on fast, intuitive charts
  • Get spreads from just 0.3 points on Spot Gold
  • See and react to breaking news in-platform, when it matters

See opportunity on a commodity?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Sell
Buy
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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 spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.