Technical analysis: key levels for gold and crude

The run lower in gold looks to have ended, while oil prices tread water after their recent move higher.

Man inspecting barrels
Source: Bloomberg

Gold
Having bounced so far this morning, defending the $1220 level once again, we now look to see if gold prices can take advantage of a weaker dollar to move back towards $1250.

A close below $1220 would signal significant weakness ahead, perhaps down to $1200 or $1190. 

Brent
The drift downwards continues here, and with the price back below $50 there will be a rush of people decrying the end of the latest rally.

However, with the price oversold intraday, some brave souls might opt to use this as a buying opportunity, with a target of $51. A close below $48 would head towards $46.50. 

WTI
A similar picture prevails here, but with a long weekend looming it is likely we will just see a drift rather than firm direction. A resurgent USD could torpedo a rally, but overall as long as the price holds above $48.30 then the next move is higher, back above $50 and on to $51.

From here it heads towards the $58.30 area. 

This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

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.