Brent crude price slumps, while gold price breaks through resistance
Brent crude drops below key support to bring bearish outlook. Meanwhile, gold breaks through resistance to bring short-term bullish view.
Gold breaks resistance to signal further upside to come
Gold managed to rise through the $1474 resistance level yesterday, bringing a new bullish signal with it. This does look like a retracement, yet the depth of this move remains to be seen.
For now, further upside looks likely, with the 61.8% Fibonacci level providing a potential area of resistance. However, given that this is perceived as a retracement, the bears are likely to come back into play before long.
Brent crude breakdown points towards further losses to come
Brent slumped sharply in response to a higher than expected inventories figure earlier in the week. We have seen price fall through both trendline and $60.42 support, signaling an end to the uptrend seen since the beginning of October.
With this in mind, further downside is likely before long, with short-term upside seen as a selling opportunity. Only with a break through $63.15 would that bullish trend come back into play.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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.
Speculate 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
Prices above are subject to our website terms and agreements. Prices are indicative only
