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

Technical analysis: key levels for gold and crude

The consolidation goes on in gold, which continues to hold above $1200. Meanwhile oil looks to be on the back foot after falling from $49 yesterday.

Crude oil processor
Source: Bloomberg

Gold shows no major rally signs

The price remains above $1200 but so far there is no sign of a real rally developing. A close above $1220 is needed to confirm real upward momentum is in play.

A move below $1200 still targets $1110. Gold’s fate is in the hands of the dollar, with a pullback for the greenback the best hope for a gold rally.

Gold price chart

WTI price slumps

With the excitement over a possible OPEC deal having worn off for now the price has dropped back from its highs above $49. It is now beginning to move below the 50-day simple moving average ($48.11).

If upside momentum has truly been lost then we would look to the rising trendline at $47.40 to provide support, with a break below here heading towards $44. 

WTI crude price 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 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.