All trading involves risk. Losses can exceed deposits.
Over 40 years’ heritage
Over 185,000 clients worldwide
Over 15,000 markets

Technical analysis: key levels for gold and crude

Dollar weakness has done wonders for commodity prices, with gold and oil both surging. 

All trading involves risk. Losses can exceed deposits.
Crude oil pipe
Source: Bloomberg

Gold pushing up strongly

Gold recovered in spectacular form yesterday, recovering most of the losses of the past week, and pushing back above the vital $1220 level.

While it has pulled back from its overnight highs, it looks as if the momentum will carry the price high, with a potential first target at $1254. Above this $1260 and then $1271 come into play. Buyers came in to defend the $1195/$1200 area, so the bears would need to get the price back below here to signal a turn lower.

Gold chart

Brent supported by the weak dollar

The bounce for Brent back above the 200-day simple moving average continues, with the weak US dollar helping to boost commodity prices in general.

A move upwards from here would target $53.11, the weekly pivot, and then on to the $53.94 level. The areas to watch for support would be $51.55, $50.92 and then $50.34. The price action in any dip should be carefully watched, but for the moment it looks like the buyers have the upper hand. 

Brent chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Education

  • Introduction to spread betting

    In this section we offer an introduction to financial spread betting and how it works, featuring examples and reasons to spread bet. We also discuss the related pricing and funding requirements.

  • Ways to manage risk

    All financial investments carry some level of risk. Find out how you can help to protect your portfolio by measuring the risks you face and managing this exposure sensibly.

  • Interest rates

    Find out more about other markets that we offer, from how they work and what they cover to how you can spread bet and trade CFDs on them.