Technical analysis: key levels for gold and crude

Gold’s decline looks likely to continue, amid a wider risk-on mood. Meanwhile, Brent crude continues to rise, with the recent breakout providing consistency in its ascent 

Gold falls towards $1320 support level

Gold has continued its decline since rallying into the range top on 11 April.

We look like we are now heading towards the lower echelons of that range, with $1306 representing the extreme boundary in question. Whether we see further downside immediately or an upward retracement depends on whether we break below $1320 support. 

Brent pushes higher yet again

Brent is continuing its ascent this week, following the recent break through $70.85 resistance. This breakout is expected to continue extending higher until we see a break below the most recent swing low.

On this occasion, that swing low comes in at $72.39. As such, a bullish outlook remains unless we break below $72.39. With a rising wedge forming, there is a clear risk that we will soon see such a downward break. However, such a break would likely bring a retracement of the rally from $66.61 into play.

IGA, may distribute information/research produced by its respective foreign marketing partners 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.