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Technical analysis: key levels for gold and crude

Gold may well have ended its pullback and could be poised to move higher, while a bounce back above the 200-day SMA for brent suggests a further bullish move.

gold price
Source: Bloomberg

Gold moves higher

Having stabilised around $1260, gold has begun to move higher, although it needs to move above $1270, the high from Wednesday, to provide confirmation of bullish strength.

Above $1270 the price will head towards $1280, then $1296 and $1300. A loss of $1260 would suggest a bigger pullback, taking the price down to $1250 and then $1240.

gold price chart

Brent bullish outlook

Brent rallied back above the 200-day simple moving average (SMA) yesterday ($51.60) suggesting that buyers are returning once again.

A bounce to $53 and then $53.81 (the 50-day SMA) would be the first target to look for. It would take a close below $51 to reverse this bullish outlook.

brent 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.