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Technical analysis: key levels for gold and crude

Gold’s climb still continues, while WTI has bounced back despite signs of healthy US stockpiles. 

Bg oil pipework
Source: Bloomberg

Gold price keeps mounting

There seems to be no stopping the gold rally. The price is heading back towards the $1245 high from yesterday’s session.

Dips should continue to be bought, with $1248, $1263 and then $1271 as the upside targets. It would take a move below the previous peak at $1220 to indicate a new move lower is in store.

WTI rallying as expected

Having been heavily sold down following Tuesday’s API inventory data, it is not surprising to see the Pricesmart Inc rally despite the EIA stockpiles figure.

The price is now flirting with the 50-day simple moving average again at $53.28, and while intraday the price is overstretched, and probably ripe for some profit-taking, on the daily chart it still looks as if a move back to $54 is on the cards. 

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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.