Gold price falters but oil price bounce leaves downtrend intact
The recovery in risk appetite has seen gold hit hard, and while oil has managed to rally 2%, this has made little impression on the current downward trend.
Gold suffers bearish turn
The January rally in gold has run its course, with the demise of bullish sentiment apparently proved with the sharp turnaround this morning.
After breaking below trendline support and the 200-hour simple moving average (SMA) at $1573, the price hit a nine-day low at $1550. The modest overnight bounce to $1560 then reversed, creating a lower high, which looks set to continue if the price drops below $1550.
WTI’s downtrend goes on
WTI is making another attempt to rebound from support around $50.00, but on the hourly chart the sequence of lower highs and lower lows continues.
Bulls will need the price to establish a new intraday higher high above $52.00 and a higher low above $50.00 to provide an expectation of even a short-term rebound in price. Below $49.50 the price could struggle to find support, with the December 2018 low at $42.40 the next big level to watch.
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
