Gold price and Brent crude oil price drift lower overnight
Gold and Brent crude ease back, yet there is still a strong possibility of further upside to come.
Gold starts to ease back amid recent gains
Gold is going to be a key market to watch today, as market sentiment around US-China trade war plays out on both ends of the risk spectrum. Gold has been gaining ground of late, with stock-market losses pushing traders towards the likes of gold.
However, overnight upside for stocks have dented demand for this precious metal, with the price falling below trendline support. We need to see a break through $1519 to bring about a clear bullish continuation pattern. Given the failure to overcome that high yesterday, a decline below $1500 would point towards a possible bearish phase coming into play. Until then, the recent recovery still remains intact despite a move below trendline support.
Brent consolidation continues around key support
Brent has been oscillating above a key support level of late, with the sharp losses of last week bringing us back into the $55.80-$56.06 support zone. We have largely consolidated since that decline, with the intraday price action failing to really gain traction yet.
The lower lows evident towards the beginning of the week have been negated with the break through $58.76. Thus, watch out for whether we see a break below $57.24 or not as we seek to see some form of consistency build for this market. However, we would ultimately need to see a break through either $59.51 or $56.08 to bring about greater clarity.
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.
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
Live prices on most popular markets
- Forex
- Shares
- Indices
