Technical analysis: key levels for gold and crude

Gold is pulling back from a crucial resistance level, while Brent prices push into multi-year highs with conflict in Syria expected to help drive further gains.

Gold falling after spike into range top

Gold has been falling back following yesterday’s sharp spike towards the $1367 mark. That level represents the top of the range, which has been in play over the past three months.

As such, should the range persist, we will need the price of gold to continue falling from here. With that in mind, watch for potential further downside, where a break through $1367 would be required to signal a bullish breakout from this multi-month range.

Brent hits new three-year high

Brent has continued to surge higher following President Donald Trump’s tweet over the potential for US involvement in Syria. The break through the $70.00-$70.85 resistance zone highlights the possibility of a bullish breakout period.

As such, it is likely we will see crude prices continue to rise, where a break below $70.00 would provide a warning sign. Until then, further gains are expected, with the likely involvement of the US in Syria only serving to bolster calls for higher crude prices.

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.

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