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

While equities rally, gold has taken a knock. In the meantime, oil is looking to recover from steep losses on Friday.

All trading involves risk. Losses can exceed deposits.
Gold
Source: Bloomberg

Gold momentum has slowed

Gold's steady ascent since late July has run into a roadblock, with a gap down taking the price below the $1337 level.

Given the steepness of the trend since July, we could see the price head all the way back towards $1300 and still be in an uptrend. Support is possible around $1326 and then at the 50-period simple moving average (SMA) at $1312.

Gold price chart

WTI facing a bearish outlook

A sharp reversal for WTI on Friday could mark the start of a new drop, so it will be up to buyers to step in and keep the price above $47.40. A close below this level would be a bearish development, and raise the prospect of a move back to $46.00.

If buyers can move the price higher and back above $48.50, we will wait to see if they can reclaim $49.50. Above here, the 200-day SMA at $49.90 comes into play, and then the $50.50 level. 

Oil price 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

  • Sectors

    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.

  • What is a trading plan?

    A trading plan is a tool that you can use to clearly define your trading objectives and help you achieve them. In this module we explain how to construct your personal plan, and how to implement it.

  • Ways to trade

    As the essential components behind just about every other product imaginable, commodities are as vital as they are volatile. Find out how these invaluable natural resources fit into the wider trading world.