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Technical analysis: key levels for gold and crude

Gold may well be building a base ahead of a move higher, while OPEC’s failure to agree a production freeze has left crude prices unfazed. 

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.
Oil rig
Source: Bloomberg

Gold could move up to $1250

Gold has managed to steady its decline, hovering above $1200 in recent sessions. A close below here, and then below the next support at $1190, would open the trapdoor to fresh losses.   

However, if the price holds around its current level then we could see the beginning of an upward move, perhaps to $1250 in the first instance.

Brent could find support at $46.50

Despite no agreement to cut production, the price continues to hold around $50. However, until we see a daily close above $50.90 bullish momentum will still be absent.

A push lower would head towards support at $46.50.

WTI bulls eye close above $50

The price recovered off the lows yesterday, and remains within the $2 range seen since mid-May.

Bulls still need a close above $50 for WTI, while bearish momentum looks hard to come by unless the price moves below $46. 

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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.