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

Technical analysis: key levels for gold and crude

Gold is under further pressure after breaking key support, while there is little sign of tiredness in oil’s rally. 

Oil pump
Source: Bloomberg

Pressure on gold rises

The break below $1240 looks to have handed the initiative back to gold’s bears. Last week’s low at $1236 has also now been broken, and a close below here, and ideally below the 200-day simple moving average (SMA) at $1236, would open the way to $1223 and then $1214.

Bulls would need to recover the $1240 level and then push on above $1245 in the short-term, in order to suggest a move higher is underway. 

Gold price chart

WTI pushed up by dropping rig count

Friday’s WTI rally moved into high gear after the weekly rig count data showed the first drop since early January. We have seen only small retracements here since the price changed direction down at $42. A bigger pullback could prompt some volatility, but also a change to add to longs or initiate new positions.

As long as the price holds $45, further gains seem likely, with further upside targets lying at $47.28 (the 50-day SMA), and then on to $49. 

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 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.