Technical analysis: key levels for gold and crude

Gold moves into a key support within a recent decline. Meanwhile, Brent prices look likely to move higher soon enough despite testing a crucial support level on a number of occasions. 

Gold decline looks set to persist

Gold has been in decline since reaching the upper boundary of its range two weeks ago, with the price fleetingly hitting the lowest level in a month yesterday.

That $1320 support level is going to be key today, where a break below it would point towards a potential drop into the $1306 range bottom. Alternately, a break through the $1333 mark would provide a more bullish outlook for the short term.

Brent testing support level

Brent has been consolidating over the past week, with the price repeatedly testing a support zone around $72.40-$72.80.

A break below there would provide a short-term head and shoulders formation, heightening the chances of further decline. However, such a move would only have bearish consequences for a wider view if we saw a break below $70.47 support. Until then, any downside would likely be a precursor to another leg higher.

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.

Find articles by analysts