Technical analysis: key levels for gold and crude

Gold and Brent both move in a more bullish pattern. While Brent is starting to reverse recent gains, gold is way ahead after a sharp rise yesterday. 

After break higher, gold consolidates

Gold managed to punch higher yesterday, following the latest US inflation data. 

Given the size of that move, there is certainly a risk of a retracement over the short term. However, any such move would be seen as a retracement rather than a reversal, unless the price falls below $1306. As such, it makes sense to look out for continuation or consolidation patterns, to look for long positions.

Gold chart

Brent looks to have turned a corner

Brent seems to have progressed recently, with the sell-off failing to break below the $61.04 level and subsequently rallying through the $64.24 swing high.

With that in mind, the current pullback looks likely to be a short-term move, with further upside expected, as long as the price does not fall below $61.66. 

Brent chart

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.