Technical analysis: key levels for gold and crude

Gold has hit a crucial support level, putting it at a potential turning point, while oil’s surge shows no sign of stopping. 

Oil
Source: Bloomberg

Gold starts a bounce from the support zone

Gold bulls need to step up, and soon. The price managed to hold the $1264 support zone that was tested at the beginning of the month, and for now another bounce from here is in progress.

A close above $1285 would create a new intraday higher high, and put a more bullish spin on the outlook. If the price closes back below $1264 then we have a bearish picture, with $1246 and $1239 in play. 

WTI reaches highest level for months

The surge in price has carried WTI to a level not seen since April. While some skittishness is likely, any pullback towards $52.00 remains a buying opportunity.

Indeed, any drop that holds above the October low at $49.60 fits within the rising trend seen since June.

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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.