Technical analysis: key levels for gold and crude

A potential breakout in gold has been stymied, while oil’s decline continues.

Gold rally knocked back

An attempt to close above $1235 came to naught yesterday for gold as risk appetite recovered, but if equities drop once more it will likely make another attempt to break above $1235.

Above this, $1260 comes into view, and $1220 remains as possible support.

WTI still burdened by selling

The decline continues here, with WTI recording a new lower low.

A rebound would need to clear the $70 area to break the swing high from the past week, otherwise more losses seem likely. The price is now below the early September low at $67, so further declines target $64.

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.