Gold and Brent start to reverse lower
Gold on the slide following yesterday's Fed meeting. Meanwhile, Brent crude is also starting to weaken following the recent rebound.
Gold breaks down following Fed failing
Gold has been declining off the back of a Federal Reserve (Fed) meeting which saw chairman Jerome Powell fail to transmit a dovish message despite providing the first rate cut since 2008.
The prospect of an easing phase has been a core driver of gold upside, yet we are seeing that undone somewhat after the Fed indicated that cuts would likely be few in number. The inability to break through the $1434 was key here, with shorter-term intraday charts highlighting a breakdown ahead of the meeting. We have since broken below the $1415 low, paving the way for a wider period of weakness. The next level of support to watch is $1400, with a whole host of historical levels to note below there ($1375 down to $1347). For the time being, watch for $1400 to break if this bearish picture is to continue developing.
![Gold chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/content-2-chart-images/XAUUSD-4-hours-2019_08_01-09h19.png)
Brent turning lower around trendline resistance
Brent has started to weaken after rallying towards trendline resistance earlier in the week. This market still looks like it is trading within a retracement phase given the break below $62.04 in mid-July.
Thus, while we could see another leg higher over the near term, we have seen a deep retracement (between 62.8% and 76.4%) and a move back into the trendline region. Therefore, there is a potential for a breakdown from here, which would be confirmed with a break below $62.86. watch for a break below $63.87 for an intraday bearish signal.
![Brent chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/content-2-chart-images/LCO-4-hours-2019_08_01-09h27.png)
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.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/ContentImage/Commodities global component NA banner.jpg/jcr:content/renditions/original-size.webp)
Trade 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
1In the case of all DFBs, there is a fixed expiry at some point in the future.
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.