Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Weakness for gold comes amid a widespread risk-on sentiment. Meanwhile, Brent manages to push into a fresh two-year high.

Gold
Source: Bloomberg

Gold continues recent downtrend

Gold managed to fall further, thanks to the risk-on mode set by yesterday’s European Central Bank (ECB) meeting. We have now seen the price break below the 76.4% retracement, with the price subsequently contending with an ascending trendline dating back to July 2016.

A break below that trendline would then look towards $1260 as the next major level in question. For now, there is a chance we could see a short-term rebound. However, unless we break through $1282, another leg lower remains the likeliest eventuality.

Brent punches into two-year high

Brent has managed to break through both the $58.48 and $58.93 resistance levels overnight, with the price hitting the highest level in over two years. Interestingly, we are now seeing the price retest the $58.93 level as new found support.

While there is a good chance we could see the price move below that level, the key here is whether we see a move back below $57.70. Until then, there is a good chance we could see this market push onwards from here.

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