Technical analysis: key levels for gold and crude

The divergence in commodities continues, as oil rallies while gold continues to drift. 

Gold still not able to bounce

A late rally on Friday has merely provided an excuse for more selling for gold this morning, although the price has yet to breach the lows of last week around $1246.

Trendline support from the December 2015 low is rapidly coming into view, suggesting buying around $1244 may develop. A move above $1255, Friday’s high, would open the way to $1261.

WTI strong after new highs

Last week’s rally for WTI put the uptrend firmly back in play, confirming that dip buying is still the way to go here.

Intraday dips above $72.00 should continue to find buying, with a more bearish view in the short term requiring a move back below $70.00. A fresh move high targets $74.95.

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.