Technical analysis: key levels for gold and crude

Gold looks set for further upside as it breaks higher from the recent pullback. Meanwhile, Brent crude is pulling back in the wake of recent gains.

Gold hoping to build on recent gains

Gold has been showing signs of a resurgence of sorts this past month, with the price breaking higher from a period of retracement once again over the second half of this week.

That points towards further upside coming into play from here as we push away from this recent phase. As such, look for further gains to come into play, with a drop below $1200 needed to raise doubts over gold’s ability to continue gaining ground from here.

Brent retracing in the wake of recent gains

Brent has been turning lower since break through the $0.7967 resistance level earlier in the week.

This points towards the current pullback as being a retracement before we push higher once again. However, be aware that WTI has not seen such a break, thus bringing the validity of that break into question. For the time being, further downside looks likely. However, the validity of utilising this as a retracement or reversal is not so clear.

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