Technical analysis: key levels for gold and crude

Gold has finally found some buyers, while oil prices have moved off the lows seen at the end of last week.

A pile of gold rings
Source: Bloomberg

Gold battling to hold above $1090

Gold enjoyed a good start to the week, but since then it has fallen back from resistance around $1098. However, as long as it holds above $1090 then we may see some further buying, but the bulls need to get the price back through $1100 to confirm the upward move. For the moment, it appears a break below $1080 is off the cards, but if this does happen then the next area to watch is $1070.

Spot Gold chart

Brent targets $46

We have seen the Brent price rally off the Friday lows, but aside from some small buying the $45 level has yet to be broken. If it is then the next target is $46, the peak from Friday’s session. Any move below Friday’s lows around $44.20 would then head towards support around the August lows around $42.20.

Brent chart

WTI buyers in ascendency

Friday’s low around $40 is the area to watch, but for the moment WTI buyers have the upper hand. If the price breaks through $41.87 then the next target would be $43.03. Any further declines head towards support at $40, then $37.90. 

WTI chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.