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Technical analysis: key levels for gold and crude

Gold’s retreat continues, but oil has managed to push higher. 

Oil pump
Source: Bloomberg

Gold continues to fall

There has been little sign of buying pressure in gold since it failed to break $1220. Having fallen below $1190, it looks like we will see a push to $1173 and the 50-day simple moving average. Below this $1160 and $1140 come into view. Any buying will need to recover $1190 to suggest the pullback has run its course.

Gold price chart

Brent strength pushes the price higher

Further strength in oil yesterday helped the price push above $56, which had acted as resistance for some time. Now we look to see if the price can push on to $57.30 and then $58.80. A failure to move on above $57 would suggest a test of $55 and then down to key support at $53.94. 

Brent crude 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.