Technical analysis: key levels for gold and crude

Dollar strength is keeping gold in check, but oil shows no sign of turning lower.

Gold knocked back to Monday’s lows

Gold has given up the rally from Tuesday’s session, and now a move below the $1320 area would bring $1314 and $1307 into view.

This would then bring the 200-day simple moving average (SMA) of $1303 into play and put the price in oversold territory for stochastics. Given that this kind of price action has then resulted in a bounce, we could be on the cusp of a new leg higher for gold in the weeks to come.

WTI still on the up

The price for WTI has fallen back to the $67.30 level that has acted as support over the past few days.

Below here, $66.58 comes into play, and then $64.82. A break above $69.54 would put the price on course for $73.25.

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

Find articles by writer