Technical analysis: key levels for gold and crude

It has not been a good week for gold, which is challenging a key uptrend again. In oil markets, WTI is recovering after steep losses earlier in the week.

Gold bulls face their Waterloo

The gold bulls tried valiantly, but a strengthening US dollar has seen the commodity hit hard once again. It is now testing the post-December 2015 rising trendline, as it did at the beginning of July.

If it closes below this, and then falls below horizontal support at $1236, then $1213 and $1204 will come into play as possible targets. A rally now will have to fight its way back above $1248 and then the high of the week at $1265 to suggest a broader rebound is in play.

WTI fights to hold support

WTI has recovered from the lows of the week around $68.50, with price action over the previous two days suggesting that there is significant buying pressure at this area.

A close below $68.34 would mark a new bearish phase, bringing $64.20, $63.36 and then $62.56 into play. A fresh rally targets $72.88, $74.08 and then $74.95. 

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 writer

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% 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.