CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Commodity divergence continues apace, with gold rallying and crude prices falling. As both look to get back on trend, it is a case of ‘the trend is your friend’.

IG Analyst

Publication date : 2017-03-23T10:01:42+0000

Worker overlooking an oil refinery plant

Source: Bloomberg

Gold back to challenge resistance once more

Gold prices retraced a marginal amount overnight, with price turning higher once more this morning. With both Fibonacci (76.4%) and trendline resistance in close proximity, we need to see an hourly close above $1251 to provide confidence of further gains.

That said, be aware we are gradually moving towards the $1264 resistance level. That level will be crucial to the outlook of gold, where a break through it would provide a medium-term bullish view to match the short-term outlook.

Gold price chart

Gold price chart

Gold price chart

Brent gains unlikely to last

Brent managed to gain some ground yesterday despite the build in US crude inventories. That said, the brief break below $50.32 says a lot, with the downtrend remaining intact.

The wider, longer-term view is one of an uptrend, where a break below $44.11 would be required to negate this. Until then, it looks likely there is further room for downside, with the current rally looking like a selling opportunity. As long as we do not break $53.31, a bearish outlook remains preferable.

Brent crude price chart

Brent crude price chart

Brent crude price chart

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