Brent crude oil drops by over 5%, gold range trades and copper tries to find support amid recession fears.
Outlook on Brent crude oil, gold and copper amid resurfacing recession fears
Brent crude oil drops by over 5% in two days
Oil - Brent Crude oil’s descent accelerated as global recession fears and renewed concerns about the banking sector weighed on risky assets.
Brent crude oil not only slid by over 5% in the past couple of days but also closed its March-to-April price gap while testing its January low at $77.65 despite falling US inventories. According to Tradingeconomics “the latest EIA report showed US crude inventories dropped 5.054 million barrels last week, far exceeding expectations of a 1.486 million barrel decline.”
The December trough at $75.32 represents the next downside target, below which there isn’t much support to speak of ahead of the $70.09 March low.
While the psychological $80 region caps, further downside is expected to be witnessed.
Gold continues to flirt with the psychological $2,000 mark
Spot Gold continues to sideways trade below its one-year $2,048 per troy ounce mid-April high and does so around the psychological $2,000 mark while being stuck in a range between $2,012 and $1,970 since last week, the break out of which is likely to determine the ensuing trend.
A rise and daily chart close above the $2,012 level would engage the 5 April high at $2,032 and probably also the $2,048 peak and above whereas a fall and daily chart close below the $1,970 level should lead to the February high at $1,959 ahead of the $1,950 to $1,935 support zone, the late March and early April lows, being revisited.
Immediate resistance remains to be found between the $2,003 to $2,009 late March and Wednesday’s high.
Copper tries to find support around its March low
The price of Copper has dropped by over 6% on recession fears but is trying to stabilise around its $8,443 per ton low after six consecutive days of losses.
Should it not succeed in doing so, the 200-day simple moving average (SMA) at $8,306 may be reached next. Further down sits the January trough at $8,189.
Were a bounce to be seen, the early April low at $8,666 is likely to act as initial resistance.
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.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
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.
