Technical analysis: key levels for gold and crude

Gold is clinging on above key support, while oil’s consolidation looks to be resolving to the upside. 

Gold bars
Source: Bloomberg

Gold needs to hold $1214 to bounce

Gold steadied itself yesterday, but with the US back in earnest today we are likely to see more movement.

As long as the price holds $1214, a bounce is possible, but it will need to break the downtrend line with a move back above $1240. A close below $1214 opens the way to $1195.

Gold price chart

WTI pausing for breath

It is not surprising to see a pause develop for WTI after a near straight-line move over the past two weeks. It seems sensible to expect another move higher, as the consolidation of the week so far resolves.

A move above $47.43 would be the cue for a new breakout, while the bullish outlook persists unless we see a drop below $46.

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.