Technical analysis: key levels for gold and crude

Gold may well be building a base ahead of a move higher, while OPEC’s failure to agree a production freeze has left crude prices unfazed. 

Oil rig
Source: Bloomberg

Gold could move up to $1250

Gold has managed to steady its decline, hovering above $1200 in recent sessions. A close below here, and then below the next support at $1190, would open the trapdoor to fresh losses.   

However, if the price holds around its current level then we could see the beginning of an upward move, perhaps to $1250 in the first instance.


Brent could find support at $46.50

Despite no agreement to cut production, the price continues to hold around $50. However, until we see a daily close above $50.90 bullish momentum will still be absent.

A push lower would head towards support at $46.50.


WTI bulls eye close above $50

The price recovered off the lows yesterday, and remains within the $2 range seen since mid-May.

Bulls still need a close above $50 for WTI, while bearish momentum looks hard to come by unless the price moves below $46. 


IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.