Oil price snaps winning streak but gold price grinds higher still
Outlook on Brent crude oil and gold amid low volume trading into year-end.
Brent crude oil snaps winning streak
Oil - Brent Crude futures, which on Wednesday nearly touched the 200-day simple moving average (SMA) at 81.79 amid the prospect of a prolonged Israeli military campaign in Gaza and Iran’s increasing involvement in the conflict as well as US rate cut expectations boosting global growth and energy demand outlooks, dropped back towards the breached October-to-December downtrend line at 79.24.
The fall in the oil price was triggered by major shipping firms returning to the Red Sea route following the formation of a US-led maritime task force which is to protect commercial vessels in the area and as industry data showed that US crude inventories jumped by 1.84 million barrels last week, the biggest weekly gain in five weeks.
Into year-end this week’s high, together with the 200- and 55-day SMAs, at 81.79 to 82.10 are expected to cap the upside while Tuesday’s low at 78.39 may well hold the downside.
Gold trades in three-week highs
Spot Spot Gold’s advance from its mid-December $1,974 per troy ounce low has reached the 2020, 2022 and May 2023 highs at $2,070 to $2,082 while gunning for the minor psychological $2,100 mark as the US dollar continues to depreciate. Further up sits the early December $2,121 all-time record high.
Potential slips may find support around Friday’s $2,070 high and below it between last Thursday’s $2,055 high and the mid-December high at $2,048.
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.