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Technical analysis: key levels for gold and crude

A strong dollar means that commodities have found it hard to hold their ground this morning. 

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Gold retreats from overnight levels

A fresh downward move is developing for gold, with the price dropping back from overnight highs once again.

Below $1314, the $1307 and $1298 levels come into play. Any bounce that fails to move above $1333 remains a selling opportunity. It would require a close above $1340 to really suggest a turn higher is underway.

Gold chart

Brent recovers slightly

The price has trended lower since late January, with rallies being sold for Brent.

This was played out yesterday, with a bounce back to $65.80 finding selling pressure. While it has recovered since, any rally that fails to move above $66.00 is another lower high and thus a possible selling opportunity. Further declines target $63.00 and $61.64.

Brent 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.