Technical analysis: key levels for gold and crude

Gold’s climb still continues, while WTI has bounced back despite signs of healthy US stockpiles. 

Bg oil pipework
Source: Bloomberg

Gold price keeps mounting

There seems to be no stopping the gold rally. The price is heading back towards the $1245 high from yesterday’s session.

Dips should continue to be bought, with $1248, $1263 and then $1271 as the upside targets. It would take a move below the previous peak at $1220 to indicate a new move lower is in store.

WTI rallying as expected

Having been heavily sold down following Tuesday’s API inventory data, it is not surprising to see the Pricesmart Inc rally despite the EIA stockpiles figure.

The price is now flirting with the 50-day simple moving average again at $53.28, and while intraday the price is overstretched, and probably ripe for some profit-taking, on the daily chart it still looks as if a move back to $54 is on the cards. 

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