Technical analysis: key levels for gold and crude

Dollar weakness is doing wonders for gold, but oil has yet to find any bullish momentum to arrest its decline.

Oil refinery plant
Source: Bloomberg

Gold buoyed by Trump surge

The Trump surge and dollar weakness has meant gold is on the cusp of hitting $1300 much quicker than anyone anticipated. A push through the 50-day simple moving average (SMA) at $1299 would still leave the price in a downtrend off the summer highs.

We would need to see sustained action above $1320 to indicate the pullback has run its course. A turn lower from here would head back towards $1250.

WTI drop continues

Each drop brings the price closer to the 2016 trendline. If the price does hold above $45.85 then we could still see a rally back to $50 and then $52.

A close below $45.85 would suggest the price will move towards $43 in the first instance and then potentially down to the early August low sub-$40.

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.