Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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.

Technical analysis: key levels for gold and crude

US dollar weakness has proved a boon for commodities, which have steadily rallied this morning.

Gold figure
Source: Bloomberg

Gold challenging the 50-day SMA

The rally goes on for gold, helped by a weaker US dollar. Having pushed through $1246, the price is now challenging the 50-day simple moving average (SMA) at $1249.60. A move above here would target $1264 and the trendline off the July 2016 high.

It needs a move back below the 200-day SMA at $1229 to reverse the bullish outlook.

WTI has found support at $46,79

WTI steady rally goes on, and while the price has found support at the 50-day SMA at $46.79, yesterday’s attempt to push above the late June high of $47.41 failed.

A close above here would open the way to $49 and higher, and it will require a close back below $45 to make us particularly bearish on the outlook.

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