Gold price rallies but oil price nosedives
Oil prices have slumped to multi-year lows as a price war breaks out between Saudi Arabia and Russia. This dramatic news has, unsurprisingly, boosted gold once more.
Gold boosted by safe haven flow
The climb towards $1700 continues for gold, while the price hit this level overnight it has not held its ground.
Further gains above $1700 target $1780 and then $1924 in the longer term. The price has found support at $1660, as it did on Friday, providing a support level, with $1640 below this as another area of possible support.
WTI plunges to new depths
WTI's cataclysmic gap down will make it hard to assess the next few hours, let alone the next few days, in terms of price action. Such high volatility will lead to continued wild swings, and it will take time for new levels to emerge.
The price appears determined to hold above 2016’s lows of $27.40, so for now we have a downside target to watch. One small bullish view might emerge if the price can begin to clamber above $33.40 and the lower bound of the overnight gap.
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.
Speculate on commodities
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
Live prices on most popular markets
- Forex
- Shares
- Indices
