Technical analysis: key levels for gold and crude

Gold’s rally goes on, while oil has regained its bullish dimension thanks to a weaker US dollar. 

Gold bars
Source: Bloomberg

Gold could move to $1200

Gold’s comeback this week has been impressive, even if it has not recovered even half the ground lost since early November.

The uptrend off the December lows is still intact so any dip, such as we saw on 3 January, should bring out fresh buying, with a move to $1200 eminently possible. It would take a move below $1150 to negate the current move higher.

WTI eyes $56.20

A recovery this week, helped by a weaker US dollar, has restored the bullish outlook. Indeed, the recovery has seen the price regain $54, which leaves it open to testing $54.80 and then $55.37 in the short term, and then on towards $56.20.

It would need a drop below $52.65 to suggest more weakness is in store. 

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 articles by analysts