Technical analysis: key levels for gold and crude

Commodity prices are rallying thanks to a falling dollar, engendered by Janet Yellen’s notably dovish speech yesterday.

Gold bullion
Source: Bloomberg

Gold
Dollar weakness has revised the outlook here, with the price now leaping higher. If it can sustain gains and hold above $1240, we look to $1250 and then $1270 as upside targets in the short-term.

A real breakout will come if the price can clear the monthly high above $1285, which would open the way to $1307 and the January 2015 high.

WTI
The price has stabilised around $38, and with the dollar weaker we may see the beginning of a new upward move, although it may take a move above $40 to confirm this.

If this does occur, the next target is the March high at $42.60. A failure to hold $38 could see the price move back towards the 100-day simple moving average at $36. 

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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.