Technical analysis: key levels for gold and crude

Gold’s move upwards is still intact, while Brent is trying to recover from yesterday afternoon’s weakness.

Oil pump
Source: Bloomberg

Gold pushes higher in early trading

The bullish near-term and longer-term views for gold are still extant here, as the price moves back towards $1250.

While dips are still being bought, each bounce over the past few days been smaller, so bulls need to take charge and get the price above $1250 to restore upward momentum. The bears have been unable to get the price below $1230, so that would be a key move in creating some short-term downside.

Brent still on the up despite drop

Oil prices suffered following a miserly drop in crude oil inventories, although the price of Brent managed to hold above $60 and maintain the sequence of higher lows seen over the past few days.

It still looks like a bottoming process is taking place, but the bulls now have $61.50 and then $63.50 as targets to break to the upside.

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