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Technical analysis: key levels for gold and crude

Gold and oil are both enjoying the benefit of a weak USD, but gold’s run is about to hit a key trendline. 

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Gold bullion
Source: Bloomberg

Gold in the balance
The metal finds itself at a crucial point – it is rapidly heading towards the downtrend line from the highs of 2 May, so a failure to push on through $1285/$1290 would indicate this is another rally to be sold.

In this instance downside targets would be $1260 and then $1250, the 50-day simple moving average (SMA). A close above $1290 would then indicate another push to $1300 is in play.

WTI aims higher
Further strength this morning in WTI will be pleasing for those that bought Friday’s dip around $46. Now the next target is the November high at $48.27, and then on to the October high at $51. It would take a move below $44 to turn the outlook even slightly bearish. 

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.