Technical analysis: key levels for gold and crude

Gold continues to rally, while oil is doing its best to maintain the upward trend.

Oil pump
Source: Bloomberg

Further gains for gold?

The price of gold held above the descending trendline that it broke on Friday, so the way may be clear for further gains, up towards $1280 and then $1296.

It would take a move below $1264 to make the outlook here more bearish, while longer-term the price needs to clear $1296 to create a new higher high and put more fight into the post-December 2016 rising trend. 

Brent rallies on

The rally goes on for Brent, with $53.82 the next target, but it will need a move above $55, the May high, to suggest that the rally has further to go.

A daily close below $50 would be the real sign that a fresh move lower is underway. 

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.