Technical analysis: key levels for gold and crude

Both gold and oil have moved sideways so far this week, as the dollar strengthens, but their uptrends remain intact. 

Source: Bloomberg

Gold rally hindered by dollar

Dollar strength continues to inhibit gold’s rally, but it remains above $1314, with $1307 also acting as further support.

A move back below $1295 is needed to put a bearish spin on things. 

Brent stays on uptrend pattern

The uptrend for Brent continues here, and we look for weakness as a chance to add to positions.

A pullback towards the 100-period simple moving average (SMA) on the four-hour chart ($65.43) or an oversold reading on stochastics, would provide this. The near-term target remains at $69.23.

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.