CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Technical analysis: key levels for gold and crude

Gold breaks higher thanks to comments from Trump, while Brent continues to consolidate around the 76.4% retracement.

IG Analyst

Publication date : 2017-08-09T09:52:00+0100

Gold figure

Source: Bloomberg

Trump sends Gold spiking higher

Gold managed to break through trendline resistance overnight, following confrontational comments from Trump in relation to North Korea. Crucially, we have also seen a break through $1265, thus negating the recent creation of lower highs and lower lows.

A push above $1271 would provide a strong confirmation of the bullish shift, with that level resting above the 76.4% retracement of the entire move lower from $1274. Keep an eye out for that $1268 Fibonacci resistance level. Today seems like a day of discovery, where a break above $1271 would point towards a bullish resurgence, while a move lower from here could see the selling pick up once more.

Gold chart

Gold chart

Gold chart

Brent sideways price action continues

Brent remains within a symmetrical triangle formation, coming off the back of a wider rally into the 76.4% retracement at $52.43.

A breakout from this pattern will provide the lead on where we go next, with an hourly close above $53.00 providing a bullish view, while an hourly close below $50.89 gives confidence of a downturn for Brent. Until then, consolidation reigns.

Brent chart

Brent chart

Brent chart

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