US-Mexico tariffs see gold spike higher, while Brent tumbles
Gold and Brent head in opposite directions on the news that the US is placing tariffs on Mexican imports. This has sent gold sharply lower, while Brent has tumbled into a new two-month low.
Gold spikes higher after Trump hits Mexico with fresh sanctions
The price of gold shot higher yesterday, with overnight gains bringing the pair into a notable area of resistance. The wider downtrend has been underpinned by continued lower highs, and that is what we are watching for in this recent rally.
With the price currently trading at a confluence of resistance that encompasses the 76.4% retracement and descending trendline, there is a good chance we will see the sellers come back into play before long. A break through the $1303 level would be hugely significant, bringing about a break of that wider trend to raise the possibility of a bullish phase. Until then, a move lower looks likely before long.
Brent crude takes another sharp leg lower
Brent saw another huge leg lower yesterday, as the bearish outlook continues to bear fruit. The price is closing in on the notable $64 support level, which raises the chance of a rebound to close out the week.
The bearish outlook remains relevant, yet we are likely to see a rebound before long and thus further sell positions do not seem warranted at this level. Instead, further trades should be built around a retracement or continuation pattern.
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