Technical analysis: key levels for gold and crude

US dollar weakness has proved a boon for commodities, which have steadily rallied this morning.

Gold figure
Source: Bloomberg

Gold challenging the 50-day SMA

The rally goes on for gold, helped by a weaker US dollar. Having pushed through $1246, the price is now challenging the 50-day simple moving average (SMA) at $1249.60. A move above here would target $1264 and the trendline off the July 2016 high.

It needs a move back below the 200-day SMA at $1229 to reverse the bullish outlook.

WTI has found support at $46,79

WTI steady rally goes on, and while the price has found support at the 50-day SMA at $46.79, yesterday’s attempt to push above the late June high of $47.41 failed.

A close above here would open the way to $49 and higher, and it will require a close back below $45 to make us particularly bearish on the outlook.

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