Technical analysis: key levels for gold and crude
Gold is continuing its consolidation phase, with the price approaching a key breakdown level. Meanwhile, Brent is on a more positive footing following a period of downside.
Gold continues to consolidate
Gold remains within a consolidation phase, following a strong December surge.
With growing optimism around US-China trade talks, we are seeing some of that risk-off sentiment ease, yet we would need to see a break below $1277 to signify the start of a bearish period. Until then, there is a good chance that this is simply a retracement before we push higher once more.
Brent continues to regain lost ground
Brent is in a much healthier position compared with a week ago, with the price rising from the low of $50.00 to approach the $60.00 mark.
The key to proving this rally has longevity to it comes with a rally through the $63.75 level. However, for now watch for whether we break or respect the 76.4% retracement ($60.54) as gauge of whether this is a retracement or a reversal.
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.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.
Please see important Research Disclaimer.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.