Technical analysis: key levels for gold and crude

Gold continues its ascent amid wider market selling. Meanwhile, crude prices are regaining ground, yet it may not last long.

Oil refinery plant
Source: Bloomberg

Gold turning higher from trendline support

Gold continues to trend higher, with price trading within a rising wedge pattern. Overnight selling saw price fall into both trendline and 50-simple moving average support, which is now pushing price higher.

As such, it looks likely we will see a rally through Tuesday’s high of $1277. We would need to see a break below $1260 to negate this bullish view.

Gold price chart

Brent back to key resistance level

Brent has gained ground overnight, bringing price back to the crucial $51.23 resistance level. Yesterday’s choppy price action means we have a clearly defined level at $51.64, where a break above would negate this bearish view.

However, until then, a bearish outlook remains in place, with the $51.23 level providing the key near-term resistance level.

Brent crude price chart

WTI rally looks unlikely to last

WTI is also rallying, with price moving towards the key $47.90 resistance level. The initial break below that level marked a bearish signal that holds unless we see price break back above $50.22. 

WTI crude 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.