Technical analysis: key levels for gold and crude

Gold looks set for further upside as it breaks higher from the recent pullback. Meanwhile, Brent crude is pulling back in the wake of recent gains.

Gold hoping to build on recent gains

Gold has been showing signs of a resurgence of sorts this past month, with the price breaking higher from a period of retracement once again over the second half of this week.

That points towards further upside coming into play from here as we push away from this recent phase. As such, look for further gains to come into play, with a drop below $1200 needed to raise doubts over gold’s ability to continue gaining ground from here.

Brent retracing in the wake of recent gains

Brent has been turning lower since break through the $0.7967 resistance level earlier in the week.

This points towards the current pullback as being a retracement before we push higher once again. However, be aware that WTI has not seen such a break, thus bringing the validity of that break into question. For the time being, further downside looks likely. However, the validity of utilising this as a retracement or reversal is not so clear.

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 IG 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.

Find articles by writer