Technical analysis: key levels for gold and crude

Gold and oil are both on the up this morning, recovering more of the ground lost in recent sessions. 

Gold bars
Source: Bloomberg

Gold makes further gains

Dollar weakness continues to propel gold higher, with the price now testing the $1290 area. A close above here would then signal a move towards $1314, putting a further dent in the downtrend from the September highs.

A reversal would test $1260 and then on down to $1240. 

Gold chart

Brent aims to push higher

Brent rebounded off the lows yesterday, and moved back above $55, meaning that the bulls will now be looking to take out the $57 high from last week.

A success here would open the way to the September peak at $59, while a drop below $55 opens the path to $54, and the 50-day simple moving average (SMA) at $53.81.

Brent 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.