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Technical analysis: key levels for gold and crude

Both gold and WTI have continued their ascent, with gold in particular managing to push through a crucial resistance level to provide a renewed bullish view.

Oil pipelines
Source: Bloomberg

Gold breaks key resistance level

Gold has finally broken through the crucial $1264 resistance level overnight, after an attack by the US on a Syrian airbase saw a flight to safety. Crucially, the break through $1264 means that we are looking at a wider bullish continuation move for the market.

The long upper shadow on the large overnight candle points towards a new swing high being created and, as such, a retracement could come into play here. However, as long as we do not see a break below $1250, any pullback is seen as a precursor to further gains. Conversely, should we see the $1250 level broken, it would largely negate this bullish view.

Gold price chart

WTI uptrend remains in play

WTI has seen another strong move higher overnight, with the attack on a Syrian airbase sparking fears of a greater US military involvement in the Middle East.

We haven’t seen anything to suggest that this trend is over and as such, a bullish outlook remains in play until we create a new lower low. For now that means a break below $51.00 would be required to negate this uptrend.

WTI price chart

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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.