Technical analysis: key levels for gold and crude

Hopes of a gold bounce appear to have been dashed, while oil now needs to decide whether it wants to break key resistance.

Source: Bloomberg

Gold struggles to make gains

The price continues to hover above $1257, suggesting at least that the consolidation period goes on.

Dips down to $1250 and then $1240 could find some support, while a drop below here would head to the June lows at $1200. A bounce needs to clear $1270 and then $1280. 

WTI moves higher

Yesterday’s Vladimir Putin-inspired bounce took the price back to $52, where the rally stalled back in June. The next target to watch would be $54.13 and then a big move would take the price to $61.77, not seen since May of last year.

The price could drop to around $46 and still be in the uptrend off the February lows, with some support likely around $50, and then down to the 50-day simple moving average (SMA) at $46.83. 

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.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.