Technical analysis: key levels for gold and crude
Oil is falling in sympathy with equities but gold prices have found the strength to push to a one-week high.
Gold returns to one-week high
The pullback in equities has aided the cause of gold, which has rallied off the post-August trendline and is now back at the $1285 area that marked the limit of progress at the end of April.
Further gains target $1310, with the 50-day simple moving average (SMA) at $1293 on the way, coupled with trendline resistance from the February highs, which comes into view around $1296. The more bullish view is only replaced by a bearish one if the price drops back below $1270.
WTI steadies above $60
It is not surprising to see WTI struggling with equities also on the back foot. The price however has managed to hold the $60.00 area so far this week, which also coincides with the 50-day SMA and 200-day SMA ($61.07 and $60.64 respectively).
Further declines target $59.40 and then $58.30, while a move back above Monday’s peak at $63.00 would help reinforce the view that the pullback from $66.50 has run its course.
This information has been prepared by IG, a trading name of IG Markets Ltd 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. See full non-independent research disclaimer and quarterly summary.
Speculate on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
Live prices on most popular markets