Technical analysis: key levels for gold and crude

Gold remains within a range, where the recent respect of the top boundary brings about a bearish short-term picture. Meanwhile, a Brent breakout could bring about a more consistent period of upside. 

Gold sell-off hits the buffers

Gold has been selling off sharply since rallying towards the range top of $1367, bringing about a heightened chance of a move back into the $1310 region.

However, with the price starting to turn higher, there is a good chance we will see further upside in the near term to retrace some of the downside seen over recent days. As such, look for short-term gains, with the bearish view coming back into play with either a deep retracement or an hourly close below $1333.

Brent looks set for next leg higher

Brent managed to push through the $70.85 resistance level earlier in the week, providing a heightened chance of a strong bullish breakout.

With the price consolidating since, watch out for a potential break higher to signal a bullish phase coming into play. We are currently seeing a spike in prices, and this is likely to persist, with a break below $70.85 needed to raise questions over this bullish short-term view.

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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