Technical analysis: key levels for gold and crude

It looks like more weakness is in store for gold, while oil inventory data has put the price of crude on the back foot.

Source: Bloomberg

Gold likely to show weakness
The bounce has stalled below $1350, perhaps indicating that more weakness lies ahead. As a result, we may see a move to $1305, but a more substantial dip could head towards $1250 or even $1200.

Nonetheless, the trend in gold is still upwards, so a large-scale sell-off could be welcomed. Any bounce would still head towards the $1350 area, where gains stalled in July.

Gold chart

WTI looks to head lower
Inventory figures yesterday dealt a blow to those expecting a new bounce for oil prices, so now we look to the lows of last week at $39.25. A move through here would put $35 in focus. Meanwhile, any rally back above $42.60 would clear the way back to $45. 

WTI 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.