Technical analysis: key levels for gold and crude

Gold and crude continue to move lower, despite short term upside overnight. 

Gold bar
Source: Bloomberg

Gold sell-off looks set to continue

Gold is moving lower once more this morning, in an extension of the weakness we have seen in play since the pair hit long-term trendline resistance.

Despite the short-term bounce yesterday, we are seeing gold move lower once more, with the $1267 level marking the nearest notable support level. Below that, we have the key $1264 level to watch out for. With that in mind, while further downside looks likely, it is certainly worth noting that the $1264-$1267 support zone represents a significant hurdle to overcome.

Brent turns lower once more

Brent has turned lower following a short-term bounce overnight, with the recent downtrend clearly intact.

Yesterday’s low of $51.89 should provide us with the level which, if breached, would signal that the downtrend remains valid. This is expected, with a break through $53.00 required to negate this bearish view.

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