Technical analysis: key levels for gold and crude

Is gold’s rally losing steam? It might seem so, while in oil prices key inventory data has seen sellers take control. 

BG gold bars
Source: Bloomberg

Gold rally not finished yet

The price remains stuck below $1234 but given the momentum we have seen here since late December, it does not yet look like the rally is ending.

Further upside targets lie at $1248 and then at $1271, but it will take a move below $1211, and the weekly pivot, to suggest that a real turn lower is in the offing. 

Brent clings on to support at $54

Yesterday’s inventory data from the American Petroleum Institute sent oil falling rapidly to its lowest level in approximately three weeks. Now we look to see if support around $54 holds, as it has since December.

A break below here would head towards $52.90 and then potentially as far as the 200-day simple moving average at $50.36.

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