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’s gains capped
Gold prices have ticked lower from a high of $1,238, to its current level of $1,179, on the back of widespread support for the US dollar. Further short-term downside in gold could be realised should expectations be met for a rebound to 1.1% in US Core Durable Goods Orders data, scheduled for release at 1.30pm (London time).
Support/resistance key levels are at $1,200 to the topside, which if broken through could see a re-testing of $1,220. However, should topside support be held then a move back down to levels not seen since November, at $1,160, could be on the cards.
Higher-low bullish price for silver
Silver prices appear to have posted a higher-low of $15.53 which has since rallied higher to its current level of $15.73. This should see the former level now act as a natural area of support for a move higher, if at all. Upside targets appear to be set at $16.15 with downside risk at the higher-low of $15.53.
Brent continues to consolidate
Brent prices continue to consolidate at multi-year lows between $60 and $62.95 per barrel.
The extended decline has resulted in its relative strength index indicator moving into oversold territory, printing a recent low of 20, which has since moved higher to 33.3. Price consolidation will be the continuing theme until a break of the 50 level is seen.
Support/resistance levels are at $60, which if broken could see a move lower to $58.2. However, should a pickup in Brent’s RSI be seen then a re-testing of $62.95 is likely.
Bullish pattern in WTI continues
WTI prices posted a higher-low of $55.34 (Dec 22), which appears to have sparked a short-term rally to its current level of $56.16. Topside resistance presents itself at $56.39, which if broken could lead the way to a re-testing of $57.
However, downside targets remain at WTI’s lower-high of $55.34.