Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Technical analysis: key levels for gold & crude

Gold prices remain under pressure, while oil looks set for a short-term bounce.

Gold
Source: Bloomberg

Gold looks to head lower
Despite a late bounce on Friday, gold remains under pressure. A failure to push on above $1225 would suggest a test of the lows of the past week around $1210. If this is broken then we look towards $1190 as possible support. 

Gold daily chart

Brent continues downtrend
Oil weakness in the past week has provided an interesting divergence for markets. We are still seeing a downtrend here, so the price will need to clear $39 for any hope of a more extended bounce. If it achieves this then the next area to watch is $41, and then $42.30. Downside targets lie around $36.50 in the first instance, and then down to $34.90. 

Brent daily chart

WTI appears stable
After a steady drop over the past week or more, WTI has stabilised around $36.50. A bounce here back to $38 may bring out fresh sellers, and it would take a move above $39 to confirm that the bounce has more room to run. Downward targets lie around $34.30 and then $32. 

WTI daily chart

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.