Gold price consolidates, as Brent crude price slides towards key support
Gold is on the rise, yet trendline resistance could keep this haven in consolidation mode. Meanwhile, Brent crude is heading lower, with key support at risk of being broken.
Gold rises into triangle resistance
Gold has been in consolidation mode over recent days, with the price trading within a symmetrical triangle pattern. The formation of lower highs looks to come into play once again, with this current rally taking us towards trendline resistance.
A break of trendline and $1531 resistance would bring a more bullish short-term picture, yet a bearish turn looks likely until such an upside break happens. Of course, despite the potential for a short-term move lower, we remain within consolidation mode until a break occurs in either direction.
Brent breaking towards key support
Brent is selling off this morning, with the price heading towards a critical support level. The wider creation of higher lows would be negated with a break below $57.90.
Thus, while we do look likely to see further downside for now, it makes sense to await such a break to bring about a bearish picture on the longer time frames. To the upside, we would need to start seeing swing highs broken to bring about a new bullish short-term picture. Thus, watch for a rise through $58.76 for such a move to come 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
