Technical analysis: key levels for gold and crude

Gold has continued its gains, pushing through key resistance levels. Meanwhile, Brent is remaining somewhat rangebound despite the recent OPEC production cut.

Gold uptrend continues after recent breakthrough

Gold managed to break through the $1237-$1243 resistance zone last week, bringing about a new higher high on the daily timeframe. This also continues the uptrend seen since the market bottomed out in August. With the price currently drifting lower, there is a chance we could start moving into another wider retracement phase.

However, until we break below $1235, there is also a chance that this is simply a short-term pullback before we start to regain ground once more.

Brent rallying once more after volatile period

Brent managed to rebound back into the $63.60 region on Friday, with the Organisation of Petroleum Exporting Countries (OPEC) production cut helping recover the losses seen through Wednesday and Thursday. This adds to the potential bottoming out phase that has been building over the past three weeks.

However, with trendline resistance up ahead, we will need to break out of this range and through that trendline to provide a provide greater confidence of a longer lasting period of upside to come.

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. 75% 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.