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

Technical analysis: key levels for gold and crude

Gold looks to be turning lower after continued failure to take out $1300, while oil’s apparent bullishness is ebbing away. 

Gold figure
Source: Bloomberg

Gold - no sign of pushing higher for now

We have seen gold falter at $1290 this week, with no sign thus far that another push higher is on its way. Still, the rally from the June lows is intact, so we need to see a conclusive break of $1270 to become particularly bearish on the commodity.

A close above $1300 will invalidate the bearish idea and raise the prospect of a move to $1340.

Gold chart

WTI facing series of lower highs

Momentum in WTI appeared to shift to the upside at the end of July, with the push to $50, but since then a series of lower highs have undermined the bullish thesis. Still, each week has seen long tails on the weekly chart since then, so there is buying pressure.

However, we need a push above $49.40 to really set the seal on a push higher to $50.50 and onwards. A turn lower from $48.20 would head towards $47, with a daily close below $46.60 likely to mean that a push back to $44 is in play. 

WTI 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.