Technical analysis: key levels for gold and crude

Gold’s decline has slowed for the time being, although it has yet to see more than short-term buying. Meanwhile, WTI is struggling to move on above $69.00.

Gold finds some strength for now

Gold continues to hold above the $1205 lows of last week, but it has yet to give a meaningfully bullish signal on anything but the short-term charts.

A close above $1236 is still needed to suggest a near-term break higher is in play, one that might carry the price back towards $1260 resistance. Even here this may still prove to be a strong selling opportunity. The continued defence of $1205 gives some hope to the bulls, but a close below this level opens the way to $1195 and $1180.

WTI stalled below $69.00

Over the previous two sessions a move above $69.20 has been met with selling for WTI, so this is the near-term level to watch.

A close above here would open the way to the peak from the end of July at $70.00, and would then see the price move on to challenge the downtrend line from the June high. A break above this then indicates a broader rally towards $73.00 and higher is in play. A drop will find possible support around $66.00. 

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.