Technical analysis: key levels for gold and crude
Gold and Brent diverge, as the safe haven aspect of gold sends it towards a key breakout level of resistance. Meanwhile, Brent has dropped towards a key support level.
Gold climbs towards key breakout level
Gold has been gaining ground amid the recent flight to safety and stock market weakness. The rise through $1219 was of particular importance yesterday, pointing towards further upside. However, for the bullish picture to hold longer lasting consequences, we would need to see a rally through the $1310 swing high.
With the price currently weakening around the 76.4% retracement at $1300, we could start seeing some selling pressure in the near term. However, a break below $1282 would provide us with a signal that the bullish pressure is set to ease.
Brent sell-off brings bearish picture back into play
A sharp decline in Brent yesterday brought about a fall below the $69.90 swing low, raising the chances of a wider bearish picture coming into play.
The head and shoulders formation seen throughout April is coming back into relevance, with the price of Brent having to overcome trendline support and the $69.14 level to bring about a renewed bearish outlook for the medium term.
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.
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