Technical analysis: key levels for gold and crude

Oil prices have revived but gold’s descent shows little sign of stopping. 

Oil rig
Source: Bloomberg


There seems little end in sight to gold’s bear run, having smashed below the 50-day simple moving average and continued to retreat towards the 100-day SMA at $1213.

During March and April the $1220 area stemmed downside movements, so bulls will be watching this, but given the rapid break lower of recent days it is still likely that rallies will be sold. The next target below the 100-day SMA is $1180.


The price is heading back towards $50, the highs from earlier in the month, so bulls will be watching to see if a fresh breakout can occur. The next stop above here would be $50.91.

It would take a move back below $47.50 to negate the expectations of fresh bullish momentum for Brent.


Here too, recent resistance is about to be tested again, although with intraday prices overbought and crude inventories up later profit-taking may occur to some degree.

The next target in any further bullish move is $51, the high from October 2015, while above this WTI's price will encounter possible resistance at $53.90. 

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.