Brent crude price and gold price regain ground after recent losses
Brent crude and gold find a bid once more, but with crude production so higher, there are still questions over how long this could last.
Gold on the rise, as we push into key resistance
Gold has managed to rebound from the 76.4% Fibonacci support level around $1666. That looks like sending us back into fresh highs, with the uptrend of the past month providing us with a clear bullish outlook.
Nevertheless, the $1720 resistance level is worth watching for the short term given the existence of the 76.4% Fibonacci retracement. A rise through there looks likely to provide us with a continuation of the uptrend, with a break through $1739 and $1747 likely. To the downside, a break below the $1660 level would provide us with a possible bearish reversal signal.
Brent easing back after rally into trendline resistance
Brent has been regaining ground after the incredible sell-off that dominated the first half of the week. That rally has taken us into trendline resistance which is currently being respected as the price starts to turn lower once again. The pertinent question is whether this period of optimism is simply a precursor to further declines.
Certainly, a break below the $22.70 level would bring about a more bearish outlook once again. However, until then there is a chance we could see the bulls come back in around Fibonacci support. It is worthwhile noting that without any major action to curb overproduction, there is little reason to expect the prices to head drastically higher. However, with US Secretary of the Treasury Steven Mnuchin calling for $30.00, there are many who believe we could be seeing some form of supportive announcement in the near future. From here, the question is whether we see a break below $22.70 or not.
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. See full non-independent research disclaimer and quarterly summary.
React to volatility on commodity markets
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.
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance. Upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
