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Technical analysis: key levels for gold and crude

Gold and Brent have enjoyed significant gains of late. But, although there could be short-term pullbacks in play, further upside seems likely.

IG Analyst

Publication date : 2018-01-04T09:47:01+0000

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Gold gradually retracing lower

Gold is slowly channeling lower, following a blockbuster rise over the past three weeks.

This current move lower is unlikely to last; for a bullish view to come back into play, we would be looking for a break above the recent swing high of $1318. Until then, there is a good chance we could see another short-term move lower from here.

Gold price chart

Gold price chart

Gold price chart

Brent rallies despite wedge breakdown

Brent managed to rally sharply yesterday, despite the initial signs of short-term weakness, after the price fell from a wedge pattern.

With the price starting to turn lower, there is a chance we could start to see a retracement of the $66.17-$68.15 move. As such, short-term downside would be seen as a buying opportunity, where the price would have to break below $66.17 to negate the bullish view.

Oil price chart

Oil price chart

Oil price chart

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