Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Gold has been drifting lower after yesterday’s gains, yet further upside looks likely. Meanwhile, recent crude oil weakness looks likely to persist.

Oil barrels
Source: Bloomberg

Gold pulling back, yet further upside seems likely

Gold has been pulling back since yesterday’s rally into a new nine-month high, with the rebound overnight coming short as the price heads back towards the low of $1305. A break back below that level would point towards a likely continuation of this short-term weakness.

However, until we see a break below the $1275 level, the current period of weakness would look likely to be a short-term move before we push higher once more.

Gold chart

Brent breaking lower once more

Brent is turning lower this morning, with the price looking likely to follow up on the triangle breakdown seen on Monday. A break below the $51.00 level would provide confirmation of that move.

Ultimately, a bearish outlook remains in play unless the price breaks above the $52.43.

Brent chart

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