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Technical analysis: key levels for gold and crude

Gold is fighting hard to hold key support, while, after a drop yesterday, oil is looking to rally.

Oil pump
Source: Bloomberg

Gold holds ground despite signs of an incoming sell-off

Friday’s low ($1220) in gold held yesterday despite signs of a heavy sell-off, but an overnight bounce has failed to move much beyond $1230. A fresh drop would need to break $1220 to open the way to $1208 and the potential for a bigger fall. The next targets to watch on the upside are $1233 and then $1245.

Gold price chart

Brent appears to be rangebound

The price finds itself in the middle of the range, having bounced yesterday at $55.60. A push higher would target $57 and then $57.50.

Below $55.50 a move back to $54.50 and then $54 is possible. As with WTI, there is so far little sign of the range of the past two months being broken.

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.