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.
Gold tests $1200
Gold's tests of $1200 have been like the proverbial London buses – you wait ages for one and then two come along at once. That has been the experience of traders this morning, although the metal is showing a distinct reluctance to go much higher.
First targets on the upside are $1202 and $1204, followed by $1217, while a drop back first heads towards $1180, then the 200-hour at $1177 and then the crucial $1154 level.
Silver breaks through July downtrend
It seems remarkable to say it but silver has finally broken through the July downtrend, if only on the hourly chart. We need to see a close above this line for further gains in the direction of the week’s high at $16.50.
An inability to hold on to this move would still target the area around $16 and the 200-hour at $15.95, followed by a possible dive to the lows of last Friday at $15.35.
Brent hits week-highs
Oil prices are enjoying a good day, and Brent is hitting levels not seen in over a week. A close above $80 would suggest a continuation towards $83, and then even $85. Meanwhile, a failure to hold above $80 means we could be on course for further declines towards $76.75, as the commodity returns to its oversold status.
WTI pushes through 200-hour MA
US light has pushed through the 200-hour MA for the first time in almost two weeks. Having moved above the highs of this week we now look for it to sustain a move towards $78, although some pullback may be in order now that the price is overbought on an intraday chart.
First support may be found at $75.70, and then $75.30, around the 200- and then 50-hour moving averages respectively.