Technical analysis: key levels for gold and crude

Risk aversion is doing wonders for gold, but even oil is holding up thanks to OPEC’s deal earlier in the week.

Gold bullion
Source: Bloomberg

Gold looking more stable

Perhaps Deutsche Bank will be what sends gold back to the highs for the year. The price has stabilised above $1320 and is now on track to head back to $1340 and potentially on to $1360.

Risk aversion could well drive the price higher, even from current intraday overbought levels, but the new week may offer a chance to buy on the dips more effectively rather than chasing a move into a weekend when anything could happen.

Gold price chart

WTI pullbacks may be buying opportunity

Despite the excitement surrounding European banks we could see this pullback overnight as a buying opportunity. It would need a drop through $46.80 to really imperil the upward move, which looks likely to push on to $48.40. 

WTI price 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.