Gold price and Brent crude oil price moves expected to reverse
Gold and Brent crude both look set for a short-term reversal, with recent moves seemingly just retracements.
Gold rebound could come under pressure once again
Gold has been on the rise over the past few days, with the precious metal pushing towards the notable $1498 level of resistance.
However, we are seeing some signs that this could start to come undone, with the wider trend of lower highs potentially coming back into play once more. Looking at this morning’s price action, we have failed to push onwards towards $1498, instead falling back to raise the likeliness of another leg lower. The $1485 level is key here, with a break below that level signalling the likely beginning of a new bearish phase. As such, watch for a break above $1498, or below $1485 as a guide of where we go from here.
Brent pulls back into Fibonacci and trendline support
Brent crude lost ground over the course of Friday, with the price declining into a confluence of trendline and Fibonacci support.
That 76.4% retracement level looks likely to be key here, as we attempt to continue rallying out of a wider downturn that respected another 76.4% level at $58.02. With that in mind, a bullish outlook is in play here, with a break below $58.53 required to bring about a more bearish view.
This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- 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
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
