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

Technical analysis: key levels for gold and crude

Gold has faltered and looks to be turning lower, while oil has managed to bounce from its base from earlier this week.

Gold
Source: Bloomberg

Gold going down as dollar goes up

Gold continues to edge lower as the US dollar begins to revive. However, it is not yet clear that either the short or long-term trends are finished.

The former will require a break below $1240 at least, to create a new lower low. The price was stymied by the 200-day simple moving average (SMA) at $1256. Above $1256, it would head towards $1268 and $1283.

Gold price chart

WTI on the way up

Having firmly held the $47.60 level the WTI price has steadily clambered higher. The next target is the $49.50 area which held back gains in mid-March.

Above here (and ideally above the $49.70 level too) the price should head back towards $50.65 and then $51.87. Dips could well be treated as further buying opportunities. As long as $47.60 holds, the buyers remain in control. 

WTI 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 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.