Gold price and Brent crude price start to fade after recent gains
Gold and Brent crude start to ease back after yesterday's sharp gains, yet such short-term weakness could be a buying opportunity.
Gold starts to lose momentum after sharp gains
Gold has continued its ascent towards the record highs of $1921, with the price managing to surge higher over the course of the week thus far.
This is just one part of a wider precious metals outperformance that comes in a week that has seen both the European Union (EU) and US push for another substantial stimulus plan. Nevertheless, we are starting to see signs of potential short-term exhaustion, with the price currently easing back. Watch for the stochastic to break below 80 as a potential signal of impending downside.
Nevertheless, even if we do see the price of gold decline in the near term, it is highly likely that such a move would simply be another retracement and precursor to another bullish turn. As such, any short-term downside is simply perceived as a retracement, with a bullish outlook in play unless the price breaks below $1796 support.
Brent pulling back after recent bullish breakout
Brent crude has started to ease back after the recent bullish surge through the $43.91 resistance level.
That break signals the end of this recent ascending triangle formation, with further gains likely to come into play despite the current move lower. Given the bullish breakout seen yesterday, this current move lower is expected to be short term in nature, with another leg higher likely to come before long. As such, watch for support on either the $43.91 breakout level, or a Fibonacci retracement.
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
