Brent crude oil, gold and US natural gas fall on strong US dollar
Outlook on Brent crude oil, gold and US natural gas as US dollar rallies amid global recession fears and Russian missile attacks on Ukraine.
Brent crude oil in consolidation mode
Brent crude oil’s rise from its $82.55 September low to last week’s $98.00 high is taking a breather amid a strong US dollar and weakening demand outlook.
This comes on the back of global recession fears as the IMF and World Bank warned of a slowdown.
The $95.19 mid-September high and 55-day simple moving average (SMA) at $93.97 are likely to be revisited with the latter perhaps acting as support. Further down sits major support at $92.53 to $91.08, made up of the mid-July and mid-August lows and the 21 September high.
Minor resistance can be spotted at the early September high at $96.66 with further resistance seen at last week’s $98.00 high, a rise above which would push the 200-day SMA at $100.99 to the fore.
Gold dips on strong US dollar
Gold keeled over from its $1,729 early October high as the US dollar gained strength on the back of heightened tensions between Russia and Ukraine.
The price of gold slid back and after four consecutive down days reached its breached upper downtrend channel resistance line, which, because of inverse polarity, is now acting as a support line at $1,665.
Slightly below it, further minor support can be found at the $1,660 3 October low, from where the last impulsive move to the upside began. Further down lies the $1,655 mid-September low.
Resistance remains to be seen between the July and early September lows at $1,681 to $1,689.
US natural gas futures flirt with 200-day SMA
US natural gas futures revisit the 200-day SMA at $6.701 on weaker demand as global recession fears once again rear their head.
The front month futures contract already tested and then bounced off its 200-day SMA last week when it dropped to a 2 ½ month low at $6.370 before recovering.
After three consecutive days of falling prices, the odds look high for the current early October low at $6.370 to be retested, a fall through which would engage the 12 July $5.955 low as well as the July low at $5.330.
Resistance comes in between the 27 and 29 September as well as the current October highs at $7.147 to $7.260.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
