Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

A drop in the dollar has proved to be a boon for commodity bulls.

Smelted gold
Source: Bloomberg

Gold rally set to continue

The metal has enjoyed a remarkable rally since the end of December, gaining almost 7%, and so far there is little sign of it stopping. Indeed, with the dollar now weakening significantly we may be on the cusp of bigger gains.

The next areas of potential resistance are $1207 and then $1228. It is likely that a bearish move will necessitate a drop through $1190. 

Gold price chart

WTI aided by dollar drop

The dollar’s drop has rescued oil from further declines, with a recovery back above $51.70 and $52 indicating that more gains are likely.

A move through $53.70 would open the way to $54.53 and then $55.68. 

WTI price chart

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.

Find an article

Find articles by writer