Established in 1974
185,800 clients worldwide
Over 15,000 markets

Technical analysis: key levels for gold and crude

Oil looks to be on the up once more, but gold’s surge to $1300 and beyond has come to an ugly halt. 

Oil pipework
Source: Bloomberg

Gold could see $1250

As risk assets rally across the board, gold has been dumped unceremoniously from its position above $1300. The attempt to hold above the 50-day simple moving average (SMA) at $1297 has failed, so now we look to see if downward momentum continues, with $1260 and then $1250 focus.

A daily close back above $1310 is now needed before we can say that the buyers are back in charge.

Gold

Brent could target 200-day SMA

Talk of Russia falling into line with OPEC has boosted oil prices, while the general recovery in risk assets related to the US election has also helped the commodity to rally. 

In Brent, a base appears to have formed in the $45-$46 region, so further progress above here will target the 200-day SMA at $47.38.

A breach of $45 to the downside would raise the risk of a drop to $43.60 and then $41.64.

Brent

WTI could drop to $39.60

Although still below its uptrend for the year, the recovery here could be a buying opportunity, assuming no significant disruption relating to the election.

Having held above the late September lows of $44.30 the price now needs to get back above $46 to recover the 2016 uptrend, and then go on towards $49.50.

A drop through $44.30 would then test $43.08, and then move on to $39.60 for WTI.

WTI

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.