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Technical analysis: key levels for gold and crude

Gold’s rally remains capped by $1264, while oil prices will be dominated by OPEC news today. 

Oil barrels
Source: Bloomberg

Gold has to go over $1264

Once again gold has recovered from a dip, but now it needs to move above $1264 to maintain forward momentum. A failure to do so risks creating a new lower high, which would raise the prospect of a dip back to $1250 or lower.

However, the uptrend remains intact if $1245 holds.

Brent awaiting the OPEC news

Dip buyers are still in favour, although much will depend on the outcome of the OPEC meeting today.

Brent needs a firm close below $52.56 to become truly bearish on the outlook, while a continuation of the current rally would carry the price to $56 and the downtrend line off the February highs. 

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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.