Gold price and silver price head down while Brent crude price stabilises
While precious metals continue to fall, Brent crude has seen its losses halt for now.
Gold does a 180 degree turn
Spot gold saw an impressive reversal yesterday that negated the outlook for a turn higher and has put the sellers back in charge.
The price is heading lower, and towards the 50-day simple moving average (SMA). A close below $2350 opens the way to the 100-day SMA, and then down to the $2280 support zone from May and June.
Buyers will need a close back above $2420 to suggest that a new leg higher could be underway.
Silver at ten-week low
Spot silver also headed lower yesterday, and has dropped sharply today, falling below the $28.50 support zone.
More losses will head towards the May low and possible support around $26.01, with the 200-day SMA not far away from this.
A close back above $29.00 is needed to suggest that the price has stabilised.
Brent losses pause
The Brent crude oil price has moved higher off the lows of the week, avoiding any further downside after it hit a seven-week low on Tuesday.
A higher close today would help to support the view that the price has bottomed, and that a new test of the 200-day SMA could be in prospect.
A close below $80.00 negates this view and suggests a move down towards $78.00 and the June low at $76.78.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
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