Gold price and Brent crude oil price likely to decline further
Gold price and Brent crude oil price both look likely to fall into further decline despite short-term upside.
Gold on the rise yet further declines look likely
Gold is on the rise this morning, yet this could be fleeting given yesterday’s declines. The drop below $1485 seen yesterday provides us with a resolution to a phase of sideways consolidation, with the wider bearish trend looking likely to kick in once more.
That breakdown points towards this current rally being a retracement, with the possibility of further short-term upside. However, there is also a strong chance that we will see this rally fall short, with the 61.8%-76.4% retracement zone ($1490-$1492) looking interesting as an area to reverse lower from. This bearish outlook would only be broken with a rally through $1495 resistance.
Brent looks set for further downside
Brent crude broke below the $58.76 support level yesterday, negating the recovery that was in play for much of last week. This points towards a likely continuation of the wider bearish trend that has been in play throughout much of September.
With that in mind, there is likely to be further downside coming into play from here. Watch out for the inside trendline resistance to come into play should we see any further upside in the short term.
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