Technical analysis: key levels for gold and crude

Gold and Brent have both seen somewhat of a resurgence over recent weeks, but will this persist?

Gold rings
Source: Bloomberg

Gold pushing towards new 80-day highs

Gold has managed to bring itself back from the brink, despite falling below $1200 in late January. Crucially, we have seen price break back above the $1220 resistance, with a clear short-term uptrend in place. The current resistance to watch out for is $1225, which needs to be taken out to continue the recent uptrend.

However, it looks likely that we will see this uptrend continue apace. As such, a bullish view is in place unless we see a break back below $1207.

Brent back from the brink

Brent has begun to show signs of resurgent strength, following a challenge of the $53.00-$54.30 support zone in January. Crucially we have seen price break above $56.74 and fleetingly $57.19.

Given the trendline break and subsequent creation of new highs, there is good reason to believe more gains are around the corner. As such, a bullish outlook is in play unless we see a break back below $54.98.

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