Technical analysis: key levels for gold and crude

Gold is out of favour again, falling to $1200, while oil has been boosted by hopes of an output cut.

Gold returns to $1200

The resurgence in the dollar and in equities has meant that gold is out of favour once again. The price has fallen through the $1214 support zone and moved back below the 50-day simple moving average (SMA) of $1210.

While oversold intraday, any rally that fails to move back above $1220 could be a selling opportunity, and even a sustained bounce needs to clear $1235 to suggest that the bulls really are back in charge. Further declines target $1190 and $1180.

Output cut hopes spark WTI bounce

Reports of a Saudi plan to cut output have given hope to WTI bulls this morning, with the price bouncing from an eight-and-a-half-month low.

Last week saw strong selling pressure around $62.50, so a close above here would be needed to suggest that a sustained bounce is underway. If the bears can hold the price below this then a new lower high has been created and the downtrend remains intact, potentially testing last week’s low at $59.41.

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.

Find an article

Find articles by writer