Technical analysis: key levels for gold and crude

Gold has pushed back to $1200 but is unable to move beyond it, while oil looks set to head back to $52.

Gold bars
Source: Bloomberg

Gold eyes $1200

Gold recovered the $1200 level overnight but is encountering difficulty holding on to this key area. A failure to push higher leaves the downtrend from $1220 intact, and we would look to $1174 and $1153 as first targets.

A push back above $1200 would be a positive sign, but the price will need to reclaim $1220 and then break higher to suggest that a fresh bullish move is underway.


WTI could see 10 December low

The steady push towards the $52 support level goes on, with a rally yesterday to $53.50 providing a fresh selling opportunity. It looks like the sellers remain in charge, so we now watch to see if they can break $52 and push on to the 10 December low below $51.50.

A bounce from $52 would suggest the trading range remains intact, with the possibility that the price now moves back towards the key $54 area for WTI.


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.