Technical analysis: key levels for gold and crude

Crude remains stuck in its range, while gold is looking to test recent highs. 

Source: Bloomberg

Gold’s price holds on for now

A recovery to $1240 yesterday saw modest profit-taking overnight, but the dip buyers are returning to lift the gold price off its lows. We now look to see if the bulls can breach $1245, and then push on to the 200-day simple moving average at $1261.

The staunch defence of $1220 over the past week lends credence to the idea that the buyers are back in control. Sellers would need to see the price below $1220 to indicate that the rally has run its course.

WTI requires more patience

The $52-$54 range persists here, with the WTI price refusing to break out.

We continue to wait to see whether this current move to $52 has the power to break lower and push on to the next support zone at $50.60.

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