Technical analysis: key levels for gold and crude

Gold is attempting to rebound from the bottom of a long-term range, with an overnight retracement providing potential buying opportunities. Meanwhile, the Brent price continues to surge, hitting a new three-year high.

Gold pullback could bring buying opportunity

Gold has been pulling back after a rebound from the bottom of a wider range between $1307 and $1367. With the price seemingly starting to move into a more bullish phase, this pullback looks like it could be a short-term move before we see gold move higher once again.

Given that the price is around the 76.4% retracement, there is a good risk to reward associated with long positions around here. A fall below $1304 would negate this bullish view, but look for a break below $1301 in particular to potentially pave the way for a bearish breakout.

Brent breaking higher yet again

Brent is surging higher yet again, following on from a move back into $76.43 support yesterday. The respect of that support level paved the way for further gains, and provides a bullish outlook that holds as long as we remain above yesterday’s low.

A fall back below $76.43 would point towards a wider retracement of the rally from $72.39. However, for now, it looks likely we will see further upside come into play. 

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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