Technical analysis: key levels for gold and crude

Gold has faltered and looks to be turning lower, while oil has managed to bounce from its base from earlier this week.

Source: Bloomberg

Gold going down as dollar goes up

Gold continues to edge lower as the US dollar begins to revive. However, it is not yet clear that either the short or long-term trends are finished.

The former will require a break below $1240 at least, to create a new lower low. The price was stymied by the 200-day simple moving average (SMA) at $1256. Above $1256, it would head towards $1268 and $1283.

Gold price chart

WTI on the way up

Having firmly held the $47.60 level the WTI price has steadily clambered higher. The next target is the $49.50 area which held back gains in mid-March.

Above here (and ideally above the $49.70 level too) the price should head back towards $50.65 and then $51.87. Dips could well be treated as further buying opportunities. As long as $47.60 holds, the buyers remain in control. 

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.