CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Established in 1974
Over 185,000 clients worldwide
15,000 markets worldwide

Technical analysis: key levels for gold, silver and crude

Commodities seem to be running out of bullish momentum across the board today, with gold and silver particularly affected. 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Gold bars
Source: Bloomberg

Gold dip reverses last week’s gains
Today’s drop in gold puts the asset below its 200-day simple moving average – $1176 – once again, reversing the sharp rally we saw last week. The level to beat on the upside is now $1190.

Rising trend line support comes into play at $1170, with a close below this level threatening to send the metal moving back to $1162 and then on down to $1140. If the trend line holds then a bounce to $1190 would suggest a test of the area around $1210.

Silver falls but has plenty of support
Like gold, silver has fallen back below its 200-day SMA ($16). There is plenty of support below the current price in the near-term, at $15.80, then $15.72 and finally $15.60, so bears may find it hard to drive the price down.

Only a close below $15.40 really unleashes meaningful downside momentum. A close above $16.20 would undoubtedly be bullish, putting the price above the 200-day SMA and above key resistance, opening the way towards $16.80 and then on to $17.15. 

Brent crude back below $50 a barrel
The move back below $50/barrel rather upsets the bullish outlook on Brent crude, but at least the 20-day SMA at $49.50 is still holding as support. Below that, the 50-day SMA at $48.75 also comes into play.

If the price can move back above $51 in coming days then we may see a bullish move develop that could take the price back towards resistance at $54. 

WTI looks like it may bounce
Despite the drift lower from Friday’s highs, we may still see a bounce in US light crude. Rising trend line support comes into play around $46.85, coinciding with the 50-hour SMA.

A first target on the upside will be the 200-hour SMA at $47.94, and a break through here would target the 13 October highs around $48.50. 

This information has been prepared by IG, a trading name of IG 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. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.