Commodities report: gold and crude

Crude appears to be back in favour as we expect further gains to follow on from last week’s strong end. Meanwhile gold is also returning to a positive trend.

Gold bars
Source: Bloomberg

Gold back on positive pathway
Following on from a period of weakness in late March, gold has begun to climb once more over the past week. This morning has seen initial gains erased and thus some form of retracement is a distinct possibility.

However, this would be deemed to be a short-term move should it occur and a bullish view holds unless we see an hourly close below $1238. For any such retracement, Fibonacci support levels at $1247, $1245, $1244 and $1242 would be the support levels to watch.

WTI looks to break-higher
Following an initial spike higher this morning, WTI has seen a sharp pullback. We are clearly trading in an upward manner over recent days, and thus this looks like a good area for us to possibly break-higher once more after the hammer candle posted last hour.

As such, a move back towards the $41.22 resistance level seems likely. This bullish view is negated with a closed hourly candle below $40.

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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.