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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Technical analysis: key levels for gold and crude

Gold finally breaks below key support level, while Brent continues its uptrend with a rally into fresh multi-year highs.

Oil rig
Source: Bloomberg

Gold breakdown points towards further downside

Gold managed to break from a multi-month range this week, with the price consolidating overnight. This is likely to be a precursor to further downside, with a bearish short-term view in place unless we see a rally through yesterday’s high of $1297.

There is a distinct possibility that this period of weakness is a wide retracement, and thus a break below the 61.8% ($1286) level would point towards a break towards the 76.4% retracement at $1267.

Brent rallies into fresh highs once more

Brent has once again managed to break higher, keeping the uptrend intact.

This new three-year high maintains the bullish outlook, but also raises the likeliness of another pullback towards the bottom of the Bollinger band before we push higher once again. A break below the $77.60 mark would negate this current uptrend. 

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