Gold falters but Brent crude and natural gas prices make headway
While gold has suffered losses thanks to a stronger dollar, both oil and natural gas prices are moving higher.
Gold pushed down by rising US dollar
Gold’s rally has stalled since late-December, hit by a strengthening US dollar.
The pullback from the late-December high continues, and now the 50-day simple moving average (SMA) is coming into view as possible support once more. Thursday saw the price slip below the mid-December high of $2048, and this might catalyse fresh selling pressure.
Bulls will need a close back above $2065 to indicate that the pullback of the past week has run its course.
Brent off the recent lows
The price staged an impressive rally from a three-week low on Tuesday, moving back above $76 as signs of fresh attacks in the Red Sea raised fears of more disruption to global shipping.
The bounce continued in more muted fashion on Thursday, though the price was unable to hold on to all its gains, and a more indecisive tone prevailed. Nonetheless, a test of the declining 50-day SMA seems likely, and then the December high around $81 comes into view.
A reversal back below $76 sees the price challenge this week’s low, and then below this, the December low at $72.52 comes into play.
Natural Gas moves above 200-day MA
Natural gas has enjoyed a solid performance over the past month, rallying off its six-and-a-half month low and climbing back above the 200-day SMA.
After the huge declines since the end of October, a lower high is still a major risk here, and the price might yet reverse course below the 50-day SMA.
A break below 2540 would see the price back below trendline support from the December lows and revive the short-term bearish view.
The information 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 Bank S.A. 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 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.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in September 2020.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
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.
