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Technical analysis: key levels for gold and crude

Is gold’s rally losing steam? It might seem so, while in oil prices key inventory data has seen sellers take control.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-02-08T09:24:54+0000

BG gold bars

Source: Bloomberg

Gold rally not finished yet

The price remains stuck below $1234 but given the momentum we have seen here since late December, it does not yet look like the rally is ending.

Further upside targets lie at $1248 and then at $1271, but it will take a move below $1211, and the weekly pivot, to suggest that a real turn lower is in the offing.

Gold chart

Gold chart

Gold chart

Brent clings on to support at $54

Yesterday’s inventory data from the American Petroleum Institute sent oil falling rapidly to its lowest level in approximately three weeks. Now we look to see if support around $54 holds, as it has since December.

A break below here would head towards $52.90 and then potentially as far as the 200-day simple moving average at $50.36.

Brent chart

Brent chart

Brent chart

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