Gold upside looking likely, while Brent bears are expected to return
Gold and Brent drift lower, yet divergence looks likely amid a bullish gold outlook and bearish Brent picture.
Gold weakness likely to provide buying opportunity
Gold managed to surge up through the $1425 swing high yesterday, with the prospect of a looser European Central Bank (ECB) and US Federal Reserve (Fed) driving greater gold demand.
The wider bullish picture remains in play following a rise through a huge amount of resistance in June. The break through $1425 points towards an eventual rise through $1439, so it makes sense to see this pullback as a buying opportunity rather than the beginning of a bearish phase. Thus, a bullish outlook remains in play unless the price falls below $1382 support.
Brent crude expected to fall further after trendline break
The subsequent rebound has taken the price back into that key $64.01 breakdown level, with the sellers coming back into play. Given that initial breakdown on Tuesday, further losses look very likely for Brent.
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.
Live prices on most popular markets