Technical analysis: key levels for gold and crude
Gold is continuing its consolidation phase, with the price approaching a key breakdown level. Meanwhile, Brent is on a more positive footing following a period of downside.
Gold continues to consolidate
Gold remains within a consolidation phase, following a strong December surge.
With growing optimism around US-China trade talks, we are seeing some of that risk-off sentiment ease, yet we would need to see a break below $1277 to signify the start of a bearish period. Until then, there is a good chance that this is simply a retracement before we push higher once more.
Brent continues to regain lost ground
Brent is in a much healthier position compared with a week ago, with the price rising from the low of $50.00 to approach the $60.00 mark.
The key to proving this rally has longevity to it comes with a rally through the $63.75 level. However, for now watch for whether we break or respect the 76.4% retracement ($60.54) as gauge of whether this is a retracement or a reversal.
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.
See an opportunity to trade?
Go long or short on more than 16,000 markets with IG.
Spread bet and trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets