Technical analysis: key levels for gold and crude

Risk appetite is taking a hit, as the uncertainty of Sunday’s Doha meeting is providing a drag on crude. Meanwhile, gold is finding some buyers amid a flock to safety.

Gold bars
Source: Bloomberg

Another retracement for gold
Gold is rising in what looks like another retracement, similar to that seen yesterday. There is clearly a risk-off sentiment rushing through financial markets thus there is a chance this retracement could extend higher.

However, we would need to see an hourly close back above $1244 to think this is anything other than a retracement. Key resistance levels to watch in the meantime are $1234, $1236 and $1239. 

Big move lower for WTI
WTI is tumbling back towards a crucial support level this morning, with a break below $41.82 representing the completion of a double-top formation. Should we see an hourly close below that level, it would provide a $40.25 projected target.

In the event we do see a break below $41.82, other support levels to watch are $41.44 and $41.11. Otherwise, we would need to see a break back through $43.43 to highlight another leg higher for WTI.

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.