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

Technical analysis: key levels for gold and crude

Gold rallies as crude sells off, marking a clear risk off sentiment permeating through the commodities.

Gold daily chart
Source: Bloomberg

Gold
Gold has been seeing substantial gains this morning, as investors seek out havens despite the gains seen in the indices. This is a continuation of the uptrend that has been in play since the turn of the year and as such further gains seem justified for both the medium and short-term.

As such, any pullback is expected to be temporary, with the initial support level of $1327 worth watching should we reach it. A bearish view is in place unless we see an hourly close below $1320.

Gold daily chart

Brent
Brent has taken a turn for the worst over the past 24 hours, with a move lower from the $51.45 level. Crucially we didn’t see a break through the $51.73 resistance level, and as such we continue to create lower highs on the wider timeframe.

As thing stand price is turning lower, with a break below $49.55 key to continuing this short-term downtrend. A break back above $50.67 would be required to negate this bearish view.

Brent daily chart

WTI
​US crude has similarly reversed lower following a failure to break back above $50.56. With price currently seeking out a new intraday low, this sell-off looks likely to persist until we see an hourly close back above $49.48.

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.