Technical analysis: key levels for gold and crude

Risk aversion is doing wonders for gold, but even oil is holding up thanks to OPEC’s deal earlier in the week.

Gold bullion
Source: Bloomberg

Gold looking more stable

Perhaps Deutsche Bank will be what sends gold back to the highs for the year. The price has stabilised above $1320 and is now on track to head back to $1340 and potentially on to $1360.

Risk aversion could well drive the price higher, even from current intraday overbought levels, but the new week may offer a chance to buy on the dips more effectively rather than chasing a move into a weekend when anything could happen.

Gold price chart

WTI pullbacks may be buying opportunity

Despite the excitement surrounding European banks we could see this pullback overnight as a buying opportunity. It would need a drop through $46.80 to really imperil the upward move, which looks likely to push on to $48.40. 

WTI price chart

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.